The three primary options are debt agreements, Small Debt Arrangement (SDA) and Personal Insolvency Arrangements.
Debt Agreements provides you with a release from your debts upon discharge when your debts, income and assets are relatively low. An agreement is presented and voted on by creditors that match your serviceability.
Personal Insolvency Arrangement avoids bankruptcy with a formal voluntary appointment whereby we work with you to propose an arrangement with your creditors, that is often very flexible and less onerous for you than bankruptcy. PIAs are also subject to rigorous assessment by a registered trustee.
Small Debt Arrangements are formal voluntary appointments designed to be a low-cost and efficient means to come to an affordable arrangement with your creditors, that fits your cash inflow.
Frequently Asked Questions
If you meet the following criteria then you should consider Part IX over Part X and bankruptcy:
Shaw Gidley can provide you advice on Part IX and refer you to a reputable Debt Administrator (DA).
It’s imperative that you get the right assessment regarding your suitability for an SDA. Your choice will be between an SDA or bankruptcy. Bankruptcy should always be considered as a viable option due to the freedom it provides.
It is not uncommon for an individual to place themselves under further financial distress by entering an SDA, so the advice has to be right the first time around.
Attempting a PIA is the right option when your circumstances don’t fit a Small Debt Arrangement (SDA) or bankruptcy.
There are no thresholds to access the PIA legislation as it’s about your prevailing financial circumstances, that are usually more complex than those of an individual considering an SDA. More importantly, a PIA will result in a better outcome than bankruptcy for you and your creditors.
Some points to consider if you’re considering at a PIA:
A PIA is a statutory agreement with your creditors and, whilst the Bankruptcy Act dictates that it must address certain statutory requirements, the structure and content of the proposal are very flexible. For example, your PIA can include: