SERVICES
BANKRUPTCY
PERSONAL INSOLVENCY AGREEMENT
PERSONAL INSOLVENCY AGREEMENT
Bankruptcy is a legal process by which you can deal with your unmanageable debt.
You can be declared bankrupt in 2 ways:
1. Debtor's Petition - you petition for your own bankruptcy.
2. Sequestration Order - one of your creditors petitions for your bankruptcy.
Once you have been declared bankrupt, the administration of your financial affairs, known as your bankrupt estate, is administered in the same way.
A bankruptcy trustee will be appointed to your bankrupt estate. The trustee's role is to "realise your assets for the benefit of your creditors". This may involve the sale of your assets or a statutory obligation for you to make contributions from your income.
PERSONAL INSOLVENCY AGREEMENT
PERSONAL INSOLVENCY AGREEMENT
PERSONAL INSOLVENCY AGREEMENT
A Personal Insolvency Agreement or Part X agreement is an alternative to bankruptcy.
With the assistance of an experienced Registered Trustee, you put forward a proposal to your unsecured creditors for a compromise of your debts. Your unsecured creditors then vote on whether to accept your proposal.
If accepted, you enter into a Personal Insolvency Agreement. You and your unsecured creditors are bound by the terms of the agreement.
If you comply with the terms of the agreement, your creditors receive a dividend, and on the finalisation of your PIA, the balance of their debts are written off.
DEBT AGREEMENTS
A Debt Agreement (also called a Part 9 or Part IX Agreement) is a formal arrangement between you and your unsecured creditors.
It enables you to reach an agreement with your creditors whereby you agree to make a single regular payment to a Debt Agreement Administrator who then distributes the funds equally to your creditors.
The regular payments are based on what you can afford to pay, rather than what each creditor is demanding.
Under a Debt Agreement, interest on your debts is frozen and you have legal protection from further collection, recovery or legal action in respect of those debts.
A Debt Agreement will last for 3 years (or 5 years if you own a property).
For further information view our affiliated website: WA Debt Solutions Pty Ltd
CONSULTANCY SERVICES
In addition to formal appointments under the Bankruptcy Act, Bluestone Advisory can also assist with:
Negotiating an informal settlement with your creditors:
- Typically where you have less than 5 creditors;
- Where you do not qualify for a Debt Agreement; and
- Where you wish to avoid the consequences of being declared bankrupt.
Negotiating on your, or your spouse’s, behalf in reaching a settlement with your bankruptcy trustee.