Personal Insolvency Agreement

Debt Solutions

A Personal Insolvency Agreement is a flexible way for the seriously indebted debtor owing more than $88,379.20 to reach formal agreement with creditors. Like a Debt Agreement your repayments will be based on what you can afford to repay and may help you avoid formal bankruptcy.

It is a streamlined process to consolidate unaffordable debts for insolvent debtors with the protection of the Bankruptcy Act, if your:

Unsecured debts are > $88 379.20; or
Equity in assets are > $88 379.20; or
After tax annual income is > $66 284.40 or approximately > $88,379 (before tax for Australian residents)

The benefits of a PIA include:

Affordable regular payments tailored to your budget;
Unpaid debt will be legally written off (including interest);
Binds all creditors into the agreement
Fixed payment period usually from 3 to 5 years
We deal with all creditor calls and correspondence;
Avoids the stigma of formal bankruptcy – allowing you to enjoy the following benefits:
- Freedom to travel overseas
- Assets will be protected

A PIA is ideal for insolvent debtors who have a poor credit record and cannot obtain a consolidation loan. A PIA is a formal legally binding agreement with your creditors and is an act of bankruptcy under the Bankruptcy Act. As such it should not be confused as a consolidation loan.

To learn more about PIA view our Frequently Asked Questions.