Act of Bankruptcy

Entering into a PIA is an act of bankruptcy. That means, you are admitting to creditors that you cannot pay your debts. This allows creditors to apply to court to make you bankrupt. However, bringing in professional help lets creditors know you have taken action to deal with your debt. Usually, once your creditors know you are taking action, they are willing to negotiate for the best outcome for all involved.

National Personal Insolvency Index (NPII)

The NPII is a public register of proceedings under the Bankruptcy Act in Australia, including Personal Insolvency Agreements (PIA). Your name will appear on the NPII register permanently.

Credit reporting

The details of your PIA will be listed on a credit reporting agency’s records for up to 5 years, or longer in some cases. You will not be able to obtain goods or services on credit or cheque above a set amount without disclosing your status as an undischarged debtor.

Assets and Property

You must have permission from your Controlling Trustee before you deal with your property e.g. house or car.

Managing a Company

You may be able to continue running your business if the terms of the PIA allow it. But you must not manage a company, or be a director, until the terms of the PIA have been finalised and you are discharged.