The bankruptcy alternative: Part X Agreement, for individuals who are financially insolvent
The word bankruptcy brings with it numerous negative connotations and, unfortunately, people often think declaring bankruptcy is the only way out of their financial woes. An alternative to bankruptcy, is a Part X Agreement for individuals who are financially insolvent.
A Part X Agreement takes its name from Part X of the Bankruptcy Act. It lets you appoint a Controlling Trustee who calls a meeting of creditors and negotiates a binding formal agreement for debt repayment that is tailored to suit your individual financial circumstances.
Our experts will negotiate with potentially hostile creditors on your behalf
The Controlling Trustee takes immediate control of your property, investigates your financial circumstances, and then reports back to the creditors. While it may seem frightening to lose control of your assets, it can lessen the emotional impact that comes with trying to negotiate with potentially hostile creditors yourself.
A Personal Insolvency Agreement (PIA) is a tailormade formal agreement with creditors
A Personal Insolvency Agreement (PIA) is a tailormade formal agreement with the individual’s creditors that is structured specifically to suit the circumstances existing at that time. A PIA may, for example, include any of the following:
- payment of a lump sum;
- payment over time;
- disposal of some or all assets; and/or
- a combination of any of the above.
PIA legally binds the creditors and allows for full and final settlement of the debts
PIAs are flexible. Once the proposal is accepted by creditors, the PIA legally binds the creditors and allows for full and final settlement of the debts, often at significantly less than the full amount.
The benefit of a Part X Agreement is that creditors are unable to initiate further action to recover their debts, and this can prevent you from being forced into bankruptcy.
It is easier to minimise the fallout from any financial problem by seeking professional help as soon as possible. If you believe you are personally insolvent, please contact us on 1300 547 724. We pride ourselves on working with clients to achieve the best possible outcome in all matters of personal insolvency.
Are you unable to pay debts? Owe money to creditors such as the ATO?
Taking action early improves your chances of a positive outcome. Get in touch with our personal insolvency experts today
Our personal insolvency experts can help you minimise & settle debts
Part X Agreement
The alternative to bankruptcy allowing you to settle debts.
Reduce financial & emotional stress
Our personal insolvency experts negotiate with potentially hostile creditors on your behalf.
Settle reduced debt
The PIA legally binds the creditors and allows for full and final settlement of the debts, often at significantly less than the full amount.
Protection from creditors taking further action
Creditors are unable to initiate further action to recover their debts.
Personal insolvency solutions for individuals experiencing financial distress
To many, bankruptcy is the first word that springs to mind when insolvency is mentioned. But this is not the only option available – another is a personal insolvency agreement…Read more