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ARTICLE · 26 APRIL 2024

Personal Insolvency Agreement (PIA): A complete understanding

Cathro & Partners
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A PIA is an alternative to bankruptcy, allowing debtors to negotiate a debt repayment plan with their creditors.

AustraliaInsolvency/Bankruptcy/Re-Structuring
Simon Cathro
Simon Cathro
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Introduction to Insolvency and PIAs

Welcome to Cathro & Partners' guide on Personal Insolvency Agreements. Before we delve into PIAs, let's understand some key concepts. Insolvency occurs when an individual or business can't meet their debt obligations. This guide will clarify terms like 'debtor', 'creditor', 'insolvency practitioner', and 'bankruptcy' to help you navigate this complex area.

What is a Personal Insolvency Agreement?

A Personal Insolvency Agreement (PIA) is a legally binding arrangement under Part X of the Bankruptcy Act 1966. It offers an alternative to bankruptcy, allowing debtors to negotiate a debt repayment plan with their creditors.

Comparison with Bankruptcy and Debt Agreements

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