Personal Insolvency Agreement
The agreement can be formalised in a number of ways, however it would ordinarily offer creditors a greater and more timely return than what would otherwise be available in bankruptcy.
Most commonly this is achieved by a third party, often a family member, providing a lump sum payment or a series of payments over time. It may also include or exclude the claims of related parties in receiving a distribution. The benefits of entering into such an arrangement includes avoiding the three year duration and other restrictions imposed by bankruptcy.
If you have any queries about a personal insolvency agreement, how it will affect your situation and income and what your other options might be – please contact Dye & Co. Pty Ltd on 03 9818 8800
What is Part X?
Part X (pronounced Part 10) is the section of the bankruptcy act that permits the proposal of a debt satisfaction arrangement via a personal insolvency agreement.
For a personal insolvency agreement to be successful, it requires both a greater than 75% majority in the value and a greater than 50% in number majority of the creditors who attend in person or by proxy, to vote in favour of the proposal.
How will my finances be impacted if I enter a Personal Insolvency Agreement
You may still earn income and any property you own will only be affected if your proposal assigns it to the personal insolvency agreement.
You may not act as a director of a company while you are under a personal insolvency agreement, but this restriction is lifted once the agreement is completed.
The personal insolvency agreement will be noted by credit agencies but the ramifications of this may not be a severe as a recorded bankruptcy.
If you want to discuss you debt situation please get in touch and we can help you find the best solution as quickly as possible.
Speak to a specialist today
Getting advice as early as possible can put you in a much better position and provide some peace of mind. Get in touch to discuss your situation.