PERSONAL INSOLVENCY AGREEMENT

The minimum duration of a PIA is approximately 6 months (bankruptcy 3 years).
You have some control over the assets which are made available for your creditors e.g. you may offer a lump sum from a third party in full and final settlement of your debts rather than equity in your property.
You no longer have to deal with your creditors – all communications are through your PIA trustee.
Creditors cannot commence or continue recovery of their debts.
You can generally continue to trade under an ABN.
Your proposal is in “full and final satisfaction of your debts” i.e. at the end of your PIA, any unpaid PIA debts are effectively written off – subject to certain exceptions e.g. child support and maintenance, Court imposed penalties and fines, and HECS and HELP debts.

Your assets, including you home, may be sold to repay creditors.
You may have to make voluntary income payments for the duration of the PIA.
You are automatically disqualified from managing any corporations or becoming a director, alternative director or company secretary without permission from the Court for the duration of the PIA.
There may be a negative impact on your professional qualifications – seek advice from your professional body.
The fact that you have been subject to a PIA will be noted on your credit file and may remain for up to 5 years.