Personal Insolvency Agreement
A Personal Insolvency Agreement (PIA) is a legally binding arrangement between and individual and their creditors whereby the individual offers to pay their creditors in full or in part by instalments or a lump sum.
A PIA can be very flexible and can involve lump sum payments to creditors (possibly involving funds from a third party); transfer of assets to creditors; sale of assets, and payment of the proceeds to creditors; a repayment arrangement with creditors; and/or some combination of these elements.
An individual will appoint a controlling trustee who will investigate their affairs and report to their creditors. Should creditors accept the proposal, a trustee must administer the agreement.
Ultimately, however, the PIA will have to be attractive enough to the creditors so that they vote in favour of it, rather than proceed to bankruptcy.
For detailed information on Personal Insolvency Agreements Click Here.
For further information on Personal Insolvency Agreements contact the team at Rapsey Griffiths for a confidential consultation.