Case study

How Dom wiped $52,000 in debt and kept his motor vehicle

Part X (10) Personal Insolvency Agreement
Initial debt
$130,500
Outcome
40% debt wiped

Key results at a glance

Results that speak for themselves
$130,000
Total debt consolidated
~$52,000
Total debt reduction
1
Manageable weekly repayment

The challenge

Transitioning from business ownership back to a PAYG wage left Dom trapped by legacy business debts that were impossible to clear on his new income.

Overwhelming ATO debt

The bulk of Dom’s financial burden was a $116,000 tax debt accrued during his time operating as a company and sole trader.

Compounding expenses

Alongside the ATO, he owed $9,500 on a bank loan and $5,000 to Centrelink, bringing his total obligations to $130,000.

Asset risk

Dom’s only asset was his motor vehicle. Without an intervention, he was at severe risk of losing it.

Risk of Bankruptcy

He simply could not afford standard repayments. If forced into bankruptcy, he would lose his vehicle, and his creditors would receive absolutely no dividend.

The solution

After reviewing Dom’s situation, we identified that a Personal Insolvency Agreement (PIA) would provide immediate protection, save his vehicle, and offer a structured, realistic path to recovery.

Comprehensive financial assessment

We evaluated Dom’s new PAYG income, living expenses, and his $130,000 debt spread across the ATO, his bank, and Centrelink

Practical guidance

We provided a clear overview of how a PIA serves as a highly effective alternative to bankruptcy, protecting his only asset while offering creditors a fair resolution.

Tailored solutions

We structured a 5-year plan of affordable weekly instalments averaging $302. This negotiation ensured creditors received roughly 30 cents in the dollar—a vast improvement over the zero return they would get in a bankruptcy scenario.

Complete transparency

We ensured Dom understood exactly how the arrangement would wipe 40% of his debt and allow him to start again without the stress of ATO collectors.

Why this approach worked

Getting started is easy and straightforward

Reason 1

Significant debt reduction

By establishing the PIA, we successfully wiped approximately $52,000 of Dom’s debt. This 40% reduction instantly removed the crushing weight of his unmanageable ATO obligations.

Reason 2

Asset protection & fair returns

Instead of declaring bankruptcy and losing his only asset, Dom was able to retain his motor vehicle. At the same time, his creditors received a guaranteed return, making it a mutually beneficial agreement.

The result

Dom successfully executed a Personal Insolvency Agreement, experiencing immediate financial relief. The outcome eliminated the threat of bankruptcy, saved his motor vehicle, and provided a realistic, stress-free framework of single weekly payments to finally clear his name and start again.

Before
After
Improvement
Total debt
$130,000
~$78,000
~$52,000 reduced
Number of payments
3 separate demanding accounts
1consolidated weekly plan
Simplified financial management
Financial status
Facing bankruptcy
Bankruptcy avoided
Asset retained, clean slate secured
Administrative burden
High (juggling massive ATO debt)
Low (average $302 weekly instalment)
Time and massive stress saved

Additional benefits

A comprehensive approach to your financial recovery

Essential asset protection ensuring you can keep what matters most

Mental clarity and reduced financial stress

A fair, legally binding resolution that avoids the severe consequences of bankruptcy

Improved, predictable cash flow

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