Part X - Personal Insolvency Agreement
A Part X (ten) proposal is normally offered on the basis that creditors will receive a higher return than in a bankruptcy scenario. A Part X proposal, once accepted by creditors is known as a Personal Insolvency Agreement (“PIA”).
A PIA is a tailor made 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’s are flexible. Once the proposal is accepted by creditors, the PIA legally binds the individual’s creditors and allows for full and final settlement of the debts, often at significantly less than the full amount.
WA Insolvency Solutions have extensive experience in implementing PIA’s and can advise on the many alternatives available to have a PIA proposed and approved by creditors.
For further information regarding Part X’s please contact our office.
Whether you are looking for help with your company, business or personal affairs, we can help you find a solution for your financial problems.