A Personal Insolvency Agreement (PIA) is another way for you to deal with unsecured debts (such as Credit Card Debt, Store Card Debt, or Finance Arrears) which you can't pay and is an alternative to bankruptcy. Usually people propose a Personal Insolvency Agreement if they exceed the Debt Agreement Thresholds. A Personal Insolvency Agreement is also known as a Part X agreement as it is administered under Part X of the Bankruptcy Act.
A Personal Insolvency Agreement (PIA) is a legally binding agreement with your creditors which must first be approved by them. In most cases we recommend a Personal Insolvency Agreement (PIA) over a three to five year period. We will put your proposal to your creditors and in many cases they will accept to receive something less than full payment. Once approved by your creditors, a Personal Insolvency Agreement (PIA) will protect you against any further legal action which they may have been entitled to take against you, which may have resulted in your bankruptcy.
With a Personal Insolvency Agreement, you agree with your creditors what you'll pay over the term of your agreement. Not all creditors need to vote in favour of the proposal but at least 75% (in value) and at least 50% (in number) of those creditors who vote at the meeting must vote in favour of the agreement.
We will arrange the necessary documents and call the meeting of creditors on your behalf. If the voting requirements are met the Personal Insolvency Agreement will become legally binding on all creditors.
Once approved, the interest on your debts will be frozen. This will enable you to make one single regular payment over the period of your Personal Insolvency Agreement. We will distribute the surplus funds to your creditors after we deduct our fees which will also be approved by your creditors.
Call today for free and impartial debt advice on our Toll Free line to see if you qualify for a Personal Insolvency Agreement. We'll discuss your situation in a strictly confidential and empathic manner. Our debt advice professionals will discuss your needs free of charge and our advice will be provided without any obligation.
To learm more about Personal Insolvency Agreements view our Frequently Asked Questions.
