The bankruptcy alternative: Part X Agreement, for individuals who are financially insolvent
A Part X proposal is an alternative to bankruptcy for individuals who are financially insolvent. It is offered on the basis that creditors will receive a higher return than they would in a bankruptcy scenario. Once creditors accept the Part X proposal, it becomes a Personal Insolvency Agreement (PIA).
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.
Our experts will negotiate with potentially hostile creditors on your behalf
The Controlling Trustee first calls a meeting of creditors and negotiates a binding formal agreement for the repayment of debts tailored to the individual financial situation.
Once creditors accept the proposal, they are legally bound by it and the PIA allows for full and final settlement of the debts, often at significantly less than the full amount.
PIA legally binds the creditors and allows for full and final settlement of the debts
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.
We pride ourselves on working with clients to achieve the best possible outcome in all matters of personal insolvency.
WAIS has extensive experience in implementing PIAs and can advise of the many alternatives available to have a PIA proposed and approved by creditors. Get in touch with our team of experts today to see how we can help reduce or resolve your debts with creditors.
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
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