Do you think you need to declare bankruptcy? There’s another option that has helped thousands of Australians and may be right for you too. It’s called a Personal Insolvency Agreement (PIA).
Offering fewer repercussions than bankruptcy, you will be able to retain most assets including your house and in some cases investment properties.
A Personal Insolvency Agreement is ideal for someone who doesn’t meet the criteria for a debt agreement, and who wants to avoid declaring bankruptcy. A personal insolvency agreement may be offered if you meet the following criteria:
If your debts, income and assets are less than these figures, a debt agreement should be considered.
If you enter into a Personal Insolvency Agreement you are committing an Act of Bankruptcy - this means that a creditor can apply to the court to make you bankrupt if the PIA fails.
You are not allowed to manage a corporation during the PIA.
Your name and some other details will be recorded on the National Personal Insolvency Index (NPII) permanently. Your details will appear on your credit file for up to 5 years, or longer in some cases.
If trading under a business name or assumed name (whether alone or in partnership) the PIA must be disclosed to all people dealing with the business. If operating a sole trader business while in a Debt Agreement, you the debtor should include your full name in the business name; e.g. John Smith trading as Smith’s Shop.
Fees change depending on the level of debt and the work involved. We guarantee you will pay less, including all fees and charges with Beyond Debt than you will under your current situation if you continued to make repayments. Have a chat with one of our Debt Consultants and they can calculate what your total payments will be including all fees and charges.
All interest is frozen once a PIA is agreed to and signed by your Trustee. Interest will still be payable on secured or ineligible debts.