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Is a personal insolvency Agreement different to bankruptcy

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Published on Dec 14, 2012

http://www.get-debt-free.com.au/perso...

A Personal Insolvency Agreement is governed by the Bankruptcy Act, but to enter into one is not to become bankrupt. It is classed as an "act of Bankruptcy" but it differs greatly in that many of the restrictions that are imposed upon a bankrupt person are not imposed upon someone who is in a Personal Insolvency Agreement.
You get the same protection from your creditors that you would get under bankruptcy, but because you are making an offer to pay back a portion of the debt, rather than not paying anything back at all, it is less severe and invasive. Your creditors, or the majority of them, must agree to your Personal Insolvency Agreement offer though. If you decided to go bankrupt, your creditors would not have a say and would not be able to stop you.
The usual reason why someone would choose a Personal Insolvency Agreement over bankruptcy is if they wanted to ensure that their home was safe or if bankruptcy would affect their employment. A Personal Insolvency Agreement does not force the sale of your assets the way that a bankruptcy does.
To get a Personal Insolvency Agreement accepted by your creditors you need the help of a Registered Trustee. If you think you might need a personal insolvency agreement, you need to speak to an expert. Our toll free helpline is staffed by advisors who have the experience and training to make sense of your financial situation and will let you know which is the best course of action to take, whether that is bankruptcy, a Personal Insolvency Agreement, or something else.
If you would like to speak to one of our advisors, they are available toll free on 1800 98 10 70

http://www.get-debt-free.com.au/perso...

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