What is a Personal Insolvency Agreement?

Financial hardships can creep up at any time.

Job loss, family issues, poor budgeting or an investment that isn’t performing to the level you had hoped, can bring into your life the unforgiving burden of too much debt.

Cheques start to bounce and credit cards get declined whilst the bills continue to pile up.

For those who feel they’re drowning in unmanageable debt and want to avoid bankruptcy, a Personal Insolvency Agreement could be the best option.

A Personal Insolvency Agreement is a legally binding arrangement between you and your creditors that allows you to settle debts without becoming bankrupt.

The agreement is a tailored program suited to your individual circumstances, which will see you paying off debt to creditors through regular instalments.

To be eligible for a Personal Insolvency Agreement you must be in Australia, be unable to pay off your debts and not have proposed another agreement in the last 6 months. You also must have unsecured debts totalling more than $108,162.60 or have equity in assets more than $108,162.60. Additionally your annual income must be more than $81,121.95 (after tax) and $113,304 (before tax).

If you’re experiencing severe financial difficulties and would like to discuss whether a Personal insolvency Agreement is the best option for you, contact our highly trained team on 1800 981 070.