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A personal insolvency agreement is a legally binding agreement between you and your creditors to settle debts. It is a flexible alternative to bankruptcy designed for people with significant debt who have some capacity to make payments.
Under a personal insolvency agreement, you agree to pay a percentage of your combined debts over a set period. Once you complete the agreement, the remaining unpaid debt is written off, giving you a fresh start. This process provides certainty for both you and your creditors.
To be eligible for a personal insolvency agreement, you must be insolvent - that is, unable to pay your debts as they fall due. Eligibility criteria, set out in the Bankruptcy Act, include:
Our experienced team can quickly review your circumstances to determine a suitable approach for you.
Appoint a trustee
Appoint a registered controlling trustee to manage your property and develop your proposal.
Proposal to creditors
The trustee shares your proposal with unsecured and relevant secured creditors.
Creditor meeting
Creditors vote on the proposal; approval requires a majority in value and over 50% in number.
Agreement begins
Once approved, the PIA becomes legally binding, and payments commence as per the agreement.
Completion
After fulfilling all obligations, the agreement ends, debts are cleared, and completion is recorded on the National Personal Insolvency Index.
At Mackay Goodwin, we provide compassionate, professional support tailored to your unique needs. Discover why we're the trusted choice for personal and corporate insolvency services.
Our team of accredited personal insolvency practitioners has decades of expertise, helping individuals find practical solutions to complex financial issues.
We understand that no two financial situations are the same. That’s why we craft personalised strategies to suit your specific circumstances, giving you the best path toward financial recovery.
From start to finish, we offer a complete range of services to support you through every step of your personal insolvency agreement.
Understanding personal insolvency agreements is the first step toward resolving financial distress. You don't have to face this journey alone. Our team at Mackay Goodwin is here to provide the expert advice and support you need to make an informed decision.
Contact us today for a confidential discussion about your options.
Edwin is a valuable member of the senior Mackay Goodwin team, with a huge amount of expertise and experience in running a range of different Deed of Company Arrangement proposals, for Administrations across a diverse range of industry sectors, and in all states across Australia.
David has a wealth of experience across receiverships, voluntary administrations and liquidations together with restructuring and turnaround engagements. Growing up in Bathurst, NSW, David’s interest in agriculture and passion for motorsport translates to his hands-on approach in the insolvency industry. Taking upon a broad range of appointments, David provides a thorough analysis of the current situations his clients are facing and provides the best possible outcome for them and other stakeholders. David’s experience allows him to draw on a broad range of prior appointments and their unique nature to facilitate the survival of a business where possible by using achievable arrangements.
Mitchell has 20 years’ experience in corporate insolvency and restructure. Mitchell is a Registered Liquidator having working on many types of corporate appointments. He has managed complex liquidations and voluntary administrations in numerous industries with expertise in property, finance, manufacturing, IT and building and constructions. Mitchell brings value to appointments from start to finish, from marketing and having initial contact with clients to achieving exceptional outcomes.
Grahame Ward is a Registered Liquidator and Administrator with expertise in industries like property, tourism, transport, hospitality, and manufacturing. Since 1996, he has specialised in corporate and personal insolvency, reorganisation, restructuring, and crisis management. As a Chartered Accountant and Official Liquidator, Grahame is known for delivering timely and practical advice, especially in complex insolvency matters. He is actively involved in professional development through ARITA, sharing his knowledge as a workshop leader. Grahame is committed to achieving positive outcomes for stakeholders, offering reliable support during challenging financial situations.
Gavin King is a seasoned business advisor and insolvency expert with extensive experience in corporate restructuring and turnaround management. Over the course of his career, Gavin has helped numerous businesses navigate complex financial challenges, providing tailored solutions that maximise stakeholder value. Specialising in insolvency administration, he brings a hands-on approach to managing voluntary administrations, liquidations, and corporate workouts. With a proven track record of leading successful recovery processes, Gavin leverages his deep industry knowledge to guide businesses through periods of distress, ensuring they emerge stronger and more resilient.
Andrew Quinn is a seasoned professional in the insolvency and restructuring industry, serving as a Director at Mackay Goodwin. With a deep understanding of complex financial challenges, Andrew has guided numerous businesses through voluntary administrations, liquidations, and corporate restructurings. His industry experience spans across sectors including construction, hospitality, and professional services, providing him with a diverse skill set to address each client’s unique needs.
Andrew’s strategic approach focuses on achieving the best possible outcomes for all stakeholders while navigating businesses through periods of financial adversity. His commitment to providing tailored solutions ensures that businesses receive the support they need to recover and thrive in challenging times.
A debt agreement is a formal repayment plan for people with smaller debts, lower income, and limited assets, while a personal insolvency agreement is a more flexible arrangement used for larger or more complex debts.
Debt agreements have strict eligibility limits, whereas personal insolvency agreements allow tailored repayment terms but are generally more costly and complex to set up.
A personal insolvency agreement generally covers most unsecured debts, allowing you to address a wide range of financial obligations in one formal arrangement. These commonly include:
Secured debts, such as mortgages or car loans tied to specific assets, are not covered by a PIA. These must be managed separately and may require different arrangements with your lenders.
It’s important to be aware of the potential consequences of personal insolvency. Some of the key impacts include:
Find out how directors can manage debt when facing financial difficulties.
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