Personal insolvency agreements, also referred to as PIA or Part X (10) are an alternative to bankruptcy. It is a formal legally binding offer to your creditors that allows you to pay back an amount less the full amount of your debt, over a reasonable time. Once the agreed repayments are completed, the full amount of the debt is extinguished, not just the amount you paid off.
Who would benefit from entering into a PIA?
A PIA may be the right choice for you if:
• The agreement would provide a greater payment to creditors than if you were to enter bankruptcy
• you have income, debts or assets above the Debt Agreement set amounts
• you need to continue operating a business that trades under a business name
• you have numerous debts
Am I eligible for a PIA?
There are no asset, debt, or income limits to be eligible for a PIA. However, you must be unable to pay your debts by the time they are due, you must be personally in Australia or have a residential or business connection with Australia, and you must not have proposed another PIA in the past 6 months.