A personal insolvency agreement (also known as Part X or Part 10) is a formal arrangement for a debtor to deal with their creditors by making a proposal in satisfaction of their debts. This option can be feasible for a debtor that does not meet the eligibility requirements of a debt agreement because their assets and liabilities are considered too great.
The arrangement is flexible and the terms may be negotiated between the individual and creditors. The Agreement is administered by an independent person and has consequences that are important for the debtor to understand prior to entering into a Personal Insolvency Agreement. This option is an alternative to bankruptcy and can be an appropriate option if professional advice is sought early.
In order for a debtor to propose a Personal Insolvency Agreement with their creditors, they must appoint a Registered Trustee, such as SV Partners. Once SV Partners becomes appointed, we conduct our investigations, report to your creditors on your behalf and structure a proposal to creditors.
SV Partners will guide you through the process every step of the way and administer the Personal Insolvency Agreement. This can alleviate pressures you may be facing from creditor demands.
If you require more information about Personal Insolvency Agreements, visit our FAQ section. Alternatively, to discuss your situation and to see how our team can help you, call our confidential assist line on 1800 246 801 for an obligation free consultation.