A Personal Insolvency Agreement (PIA) is a flexible way for a debtor to come to an agreement with creditors to settle debts without going bankrupt.
A debtor must be insolvent to propose a PIA. there are no income, asset or debt limits.
A debtor is ineligible to propose a PIA if they are not in Australia or do not have an Australian connection.
APIA may involve one or more of the following which will result in creditors being paid in part or in full:
a.a lump sum payment to creditors either from the debtor's own money or money from third parties.
b.transfer of assets to creditors or the payment of the sale proceeds of assets to creditors.
c. a payment arrangement with creditors. (this could include deferral of repayments).
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