Personal Insolvency Agreement (PIA)

Similar to a Part 9 Debt Agreement, a Part 10 Personal Insolvency Agreement combines all of your debts into a single package. Under a Personal Insolvency Agreement (PIA), any interest on the debt is frozen, and the amount you repay is based on what you can afford, with the remainder being written off. Also, creditors cannot contact you or take any legal action against you once the Personal Insolvency Agreement is in place.

Personal Insolvency Agreements are ideal for individuals who don’t meet the criteria for a Debt Agreement and don’t want to consider the prospect of bankruptcy. Personal Insolvency Agreements have no upper limits on income, debts, or assets, making them ideal for high-income earners.

What is the Personal Insolvency Agreement process?

  • Beyond Debt assesses your financial situation to identify what you can afford to repay;
  • You engage Beyond Debt to act on your behalf;
  • Beyond Debt conducts credit checks, property valuations, and contacts all of your creditors;
  • The Personal Insolvency Agreement documents will be drawn up;
  • Once the Personal Insolvency Agreement is drawn up, a meeting of creditors is called, where relevant parties are invited to vote on the agreement. The terms of the Personal Insolvency Agreement become legally binding when a majority of creditors vote in favour of it.

Please note: Personal Insolvency Agreements are designed for individuals who do not meet the criteria for a Part 9 Debt Agreement. This typically means that you have debts exceeding $113,349.60, net income exceeding $85,012.20 per year, or assets exceeding $113,349.60.

If your debts, income and assets are less than the above figures, you might want to consider a Debt Agreement or one of the other options listed on our Debt Solutions page.

Personal Insolvency Agreements are one option in a range of debt solutions.   For information on the range of options available take a look at our Debt Solutions page. You must determine whether the information is appropriate in terms of your particular circumstances.

NB: Personal Insolvency Agreements are administered by Trustees.

*Please be advised that any amounts on this website may change slightly from time to time. Updated 22/03/2018