Personal Insolvency Agreements
Why Personal Insolvency Agreements In Australia Should Be Managed By A Qualified Professional
If ever there is a stressful problem for those already under the hammer it is deciding on a personal insolvency agreement to rid themselves of debt.
With the industry harbouring unqualified vultures who prey on the vulnerable, it is more important than ever to engage with a qualified practitioner who is part of the Personal Insolvency Professionals Association (PIPA).
So many small businesses and sole traders are unaware of just what a personal insolvency agreement entails and need to embrace the specifics. A good adviser explain that, basically, a personal insolvency agreement in Australia (PIA) is a legally binding agreement between you and your creditors which finds a way to settle debts without becoming bankrupt.
A personal insolvency agreement in Australia involves appointing a trustee to take control of your property and make an offer to your creditor to pay part or all of your debts by instalments or a lump sum. The length of your PIA will depend on what you negotiate with your trustee and creditors.
There are no debt, asset or income limits to be eligible for a personal insolvency agreement whether it such be in Melbourne, Victoria, Perth or West Australia as well as other states and territories and you may retain assets (as house or car) if the terms of the agreement allow.
Personal Insolvency Agreements Melbourne, Victoria, Perth, West Australia, and Other States and Territories
Personal insolvency agreements in Melbourne, Victoria, such as those arranged through Debt Assist, involve fees to process, propose and manage the agreement.
To find a reputable to personal insolvency agreement in Perth, West Australia and other states and territories, PIPA has a list of qualified practitioners on its website pipa.net.au.
In certain cases, some debts will prevail, which is why anyone seeking advice should see the What does a PIA cover? list on the Australian Financial Security website. This is a good way to check whether your personal insolvency agreement practitioner is showing you all the options available.
A PIA is just one option available under the Bankruptcy Act to manage debt. Other options include temporary debt protection, debt agreements and bankruptcy. There are also other options available which can be explored by visiting What are my options for dealing with unmanageable debt?
However, entering a PIA may impact future employment and credit and will appear on a public register permanently as the government outlines in What are the consequences of a personal insolvency agreement? Which is why it is so vital to employ a professional to assist with a personal insolvency agreement in Australia.
Another reason is fees to propose, lodge and manage a personal insolvency agreement in Australia. These may depend on the practitioner and feed can vary in Melbourne, Victoria, Perth or West Australia. So too can the time period of you PIA, making a reputable insolvency expert, such as those with PIPA accreditation the best investment you can make – even when money is tight.