Share
A Personal Insolvency Agreement (PIA) is a legally binding agreement between you and your creditors that allows you to settle your debts without entering bankruptcy. It provides greater flexibility in how debts are managed and could involve lump sum payments, payment plans or asset sales. The exact makeup is tailored to your financial capacity.
At Equinox Restructuring & Insolvency, we work with individuals and their advisors to develop realistic proposals that give creditors a fair return while helping you avoid the long term impacts of bankruptcy.
A PIA is a formal arrangement under Part X of the Bankruptcy Act 1966. It is suitable for individuals who:
A PIA must be administered by a Registered Trustee, such as Equinox Restructuring & Insolvency.
You appoint a controlling trustee (like us) to investigate your financial affairs
We help you draft a fair and realistic proposal to creditors
Creditors are called to vote on the proposal
If approved by a majority (in number and at least 75% by value), the PIA becomes binding on all unsecured creditors
You comply with the terms and we oversee the agreement and distribute payments to creditors
Upon successful completion, you are released from your unsecured debts
Consider a Personal Insolvency Agreement if you:
PIAs are ideal for professionals, business owners and individuals with reputational, regulatory or financial reasons to avoid bankruptcy.
Credit Report : A PIA will appear on your credit file and the National Personal Insolvency Index, but it generally has less impact than bankruptcy.
Employment : Most occupations are unaffected, though you should check with your licensing body if applicable.
Asset Protection : You may retain certain assets depending on the terms of the proposal.
Business and Travel : Fewer restrictions compared to bankruptcy – usually no need for travel permission or cessation of business.
We offer:
Our role is to help you reach a fair compromise with creditors while protecting your dignity and future.
If you’re seeking to avoid bankruptcy but still need a formal way to manage debt, a PIA could be the answer.
Click here to arrange a cost and obligation free consultation.
The term is flexible, it could be a one off lump sum or structured over a set period (e.g. 1-3 years).
No. A PIA is approved if a majority in number and at least 75% in value of voting creditors agree. It then binds all unsecured creditors.
Yes. A PIA can be proposed even after legal proceedings have commenced.
A PIA avoids the formal bankruptcy process and many of its long-term restrictions, while still resolving debts.
We may be able to vary the terms or explore alternatives. Communication is key.
Not necessarily. We structure the proposal to protect key assets where possible, depending on your financial position and creditor agreement.
The ATO is Moving Harder and Faster on…
ATO Garnishee Notices: The Warning Signs, the Mechanics,…
Payday Super Has Rewritten the Lockdown DPN Test…