Part X Personal Insolvency Agreement (PIA) Brief Summary

WHAT'S THE CAUSE?

  • Occurs in lieu of bankruptcy.
  • Individual is unable to pay all debts.
  • Personal guarantees provided for company debts are called up.
  • Individual receives letters of demand, writs and/or bankruptcy notices from creditors, debt collectors or solicitors.

WHAT'S IT ABOUT?

  • An individual who is insolvent enters into a formal agreement with creditors.
  • The agreement is flexible and the terms may be negotiated between the individual and creditors.
  • The Part X Personal Insolvency Agreement is administered by an independent expert, a Registered Bankruptcy Trustee.
  • The individual is generally released from provable debts.

WHAT IT DOES!

For Individual

  • It is binding upon all parties.
  • The restrictions of bankruptcy are avoided.
  • Provide relief from debt problems and extinguish existing debts.
  • Personal Insolvency Agreements are flexible.
  • Can start life afresh, free of debt.

For Creditor

  • Often provides a higher and quicker dividend than under bankruptcy.
  • The Personal Insolvency Agreement is binding upon all parties.
  • Uncertainty is crystallised.
  • Personal Insolvency Agreement's are flexible.
  • The Personal Insolvency Agreement is generally finalised sooner and is less costly than bankruptcy.
  • The individual's financial affairs are subject to an investigation.