Tools and resoruces
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How does it work? Simply put, an individual facing financial hardship offers to pay their creditors in full or in part by instalments or a lump sum.
A Personal Insolvency Agreement is a flexible option and a viable alternative to bankruptcy if the agreement is attractive enough to the creditors. At Rapsey Griffiths we’ve assisted individuals to set up and execute Personal Insolvency Agreements. At times PIAs can be complex, from appointing a controlling trustee who will investigate your affairs and report to your creditors, to the details of the agreement itself, our team is ready to offer high calibre support and expert advice. We’ll help you understand the entire process and map out everything with a clear plan.
What does a personal insolvency agreement involve?
The first step in a personal insolvency agreement is appointing a trustee who will investigate your affairs and report to creditors. As experienced experts in this area, we can act as trustee, help you understand the process and map out everything with a clear plan.
A personal insolvency agreement typically involves:
- Lump-sum payments to creditors (possibly involving funds from a third party)
- The transfer of assets to creditors
- The sale of assets and payment of the proceeds to creditors
- A repayment arrangement with creditors
- Any combination of the above
What are the benefits of a personal insolvency agreement?
- Protection from creditors and peace of mind
- Affordable (no surprise) repayments
- Avoids bankruptcy and its associated restrictions
- Assets don’t necessarily need to be sold