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Take Back Financial Control
with a Part X (10) Personal Insolvency Agreement

If you are facing financial distress and want to manage your debts in an organised manner without resorting to bankruptcy, a Part X (10) Personal Insolvency Agreement (PIA) could be for you. It offers a structured approach to debt resolution while allowing you to maintain some control over your financial future.  

A PIA is a legally binding agreement between you and your creditors, providing a flexible way to settle debts without declaring bankruptcy. Governed by the Bankruptcy Act 1966, a PIA serves as an alternative to Bankruptcy. The agreement in place with creditors is voluntary and the arrangement in place may include options like lump sum payments, installment payment or asset sales to relieve the debt struggles. It allows you to maintain control of your finances and generally provides a better return for creditors. However, it can affect your credit rating and financial reputation, may require asset sales and necessitates compliance with the agreement.  

Staying on target

Benefits of a Personal Insolvency Agreement

  • Single Monthly Payment: Combine all your debts into one easy-to-manage payment.
  • Lower Repayments: Agree on an affordable repayment plan that fits your budget.
  • Debt Reduction: Negotiate a reduced amount to repay, making it easier to clear your debts.
  • Interest Pause: Future interest on your unsecured debts is paused, preventing further financial strain.
  • Shortened Repayment Period: Complete your repayments within a 3 to 5-year timeframe, freeing you from debt sooner.
  • Avoiding Bankruptcy: A PIA helps you avoid the severe consequences of bankruptcy, such as loss of control over your assets and restrictions on your financial activities.
  • Less Stigma: Entering into a PIA carries less social and professional stigma compared to bankruptcy, helping you maintain your reputation and relationships.
  • Asset Retention: Depending on the terms agreed upon, you may be able to retain certain assets that might otherwise be lost in bankruptcy proceedings.
  • Asset Protection: Unlike full bankruptcy, your assets are generally protected, helping you maintain stability.
  • Flexible Repayment Terms: The terms of a PIA can be tailored to your financial situation allowing for lump sum payments, installment payments or asset sales, providing a manageable way to settle debts.
  • Negotiated Settlements: The process allows you to put forward a favourable offer to your creditors, which can result in more favourable terms and a collaborative approach to debt settlement.
  • Retention of Financial Control: Unlike bankruptcy, a PIA allows you to retain control over your financial affairs, helping you manage and plan your finances more effectively.
  • Creditor Relief: Alleviate creditor pressure and prevent legal action against you.
  • Majority Approval: Not all creditors need to agree to your proposal. You only need the majority of creditors (50.01% in number & 75% by value) to agree for the Personal Insolvency Agreement to be accepted.
  • Better Return for Creditors: Creditors often receive a better return under a PIA compared to bankruptcy, as the repayment terms can be more favourable and tailored to maximising the repayment potential.
  • Debt Discharge: Upon completion of the PIA terms, you are released from the debts included in the agreement, providing a clear path to financial recovery.
  • Payment Administration: Revive Financial Solvency Pty Ltd will administer all payments to your creditors on your behalf.

Considerations and Consequences of a Personal Insolvency Agreement

  • Credit File Impact: Your credit file rating will be affected for up to five years, which may limit your ability to incur further debt. Where you complete the agreement, the agreement remains on the credit file & NPII until the longer of 5 years and 1 month from the day the agreement is made, or 1 month from the completion date.
  • Limited Access to Credit: During the term of the PIA, you may find it challenging to obtain new credit. After completion, you can start to rebuild your credit score.
  • Professional Licenses: Certain professional licenses may be impacted, so it’s essential to understand the implications for your career.
  • Exclusions: Not all debts can be included in a Part X (10) Personal Insolvency Agreement. Secured debts (e.g., home loans and car loans) and some state debts (e.g., fines) cannot be included.
  • Joint Debts: A Part X (10) Personal Insolvency Agreement does not release another person from a joint debt.
  • Asset Sales: Depending on the terms of the agreement, you may be required to sell some of your assets to repay creditors.
  • Possible Restriction on Business Activities: While not as restrictive as bankruptcy, a PIA might still impose some limitations on your business activities and directorships.
  • Compliance Requirements: You must strictly adhere to the terms of the PIA. Failure to comply can result in the termination of the agreement and potentially lead to bankruptcy.

The Personal Insolvency Agreement Process

Submit Application
1 - 2 days

Complete our online application process to provide the details of your financial circumstances. Your personal Customer Success Specialist will discuss the Personal Insolvency Agreement with you and any alternative options available.

Provide information on your financial circumstances via online application

Discuss options and engage Revive Financial

Implement Solution
1-2 Weeks (+ 30 day Reporting period)

Your personal Customer Success Specialist will finalise your proposal and lodge your draft Personal Insolvency Agreement Proposal.

Review of your application details by our internal Compliance Team 

Report to your creditors and convene a meeting for creditors to vote on your proposal.

Take Back Control
3 - 5 years

Enjoy the financial relief provided by your Personal Insolvency Agreement to clear your unmanageable debts and start building a positive financial future today.   

Your finalised proposal is accepted by your creditors 

We collect your affordable repayments and distribute to your creditors

Why Choose Revive Financial?

Navigating a Personal Insolvency Agreement can be complex, but you don’t have to do it alone. Revive Financial’s specialised team can guide you through the process, ensuring you find the most manageable solution for your unique situation. Our experts will work with you to craft an agreement that alleviates your financial pressure and sets you on the path to a brighter financial future.

Michael

Part X (10) Personal Insolvency Agreement

$133,000 total debts across ATO, credit cards and personal loans

$100K annual income

Incurred debts due to business closing post-covid

Find out how we helped Michael

Our Solution

Helping Michael With His Debt

Michael’s business saw slow trade post-COVID and eventually had to close. His incurred debts were growing and after failed attempts to negotiate with his Creditors, he sought professional help.

After reaching out to Revive’s team of financial experts and working with them on his current financial position, a Personal Insolvency Agreement (PIA) was proposed. This was made up of 60 monthly installments of $1,117 across 5 years.

This solution allowed Michael to avoid bankruptcy with a reasonable repayment plan and most importantly – resolve his whole financial position and allow him to take back control of his finances.

Positive Outcome

Michael Finds Stability

50% Debt Reduction

Michael’s creditors accepted the arrangement and he was able to retain his only asset- his motor vehicle.

Stress-Free Recovery

With this process handled by the expert team at Revive Financial, Michael was able to move through the process with ease.

The Impossible Was Possible

Michael’s repayments were realistic against his budget and he is on the path to start afresh.

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At Revive Financial, we care about the stress and impact being in debt has on your wellbeing. We want to help you take back control with no judgement, just a helping hand.

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Revive Financial is proudly Australian owned and lead by a team of Chartered Accountants. Our qualified team have been helping Australians become debt free since 2005.

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Take the First Step Today

Don’t let debt control your life. With a Personal Insolvency Agreement, you can take proactive steps towards financial freedom. Contact Revive Financial today to learn how we can help you create a sustainable debt management solution and take back control of your financial future.

Frequently Asked Questions

What do I tell Creditors when they ring me?

”I am struggling with my finances and can’t afford to make repayments. I have contacted Revive Financial to provide a solution to all my debts. They have authority to talk on my behalf on all my accounts. Please feel free to contact them on 1800 534 534. Thank you for your call.”
Once your engagement is finalised written authority is provided to your creditors, if contacted please collect creditor name, contact number, and a reference number to provide your Customer Success Specialist.
After Phase 2 you need to tell them “Revive Financial is now dealing with this matter and has the authority to act on my behalf. Please feel free to contact them on 07 5343 1122.”

How long will my Personal Insolvency Agreement last?

While the specific terms and conditions of each Personal Insolvency Agreement are unique and particular to the individuals and lenders involved, in general, the average Personal Insolvency Agreement typically lasts 5 years. However, you can complete it earlier if you make larger payments than the set amount.

How does a Personal Insolvency Agreement affect my credit rating?

The Personal Insolvency Agreement will be listed on your credit rating and the National Personal Insolvency Index (NPII) for the longer of 5 years and 1 month from the date the Personal Insolvency Agreement is made, or 1 month from the date it is completed. If the Personal Insolvency Agreement is completed within 5 years, the Credit File and NPII will be updated to reflect the agreement was completed for the remainder of the 5-year period. After the listing period, you will have a clean slate from which to rebuild your finances. We have access to a panel of lenders willing to lend money to individuals who have completed Personal Insolvency Agreements at competitive rates.

How does a Personal Insolvency Agreement affect my employment?

A Personal Insolvency Agreement may impact your employment, especially if you hold a professional license or work in certain industries. Some employers may have policies regarding employees entering into Personal Insolvency Agreements, and certain professional licenses may be affected. It's important to check with your employer or professional licensing body to understand any potential implications for your career.

I am only on Centrelink payments. Can I still enter into a Personal Insolvency Agreement?

You might still be eligible for a Personal Insolvency Agreement despite being on Centrelink or pension payments, provided you can afford the regular Personal Insolvency Agreement repayment. However, we will explore all other Debt Management Solution options available to you before suggesting a Personal Insolvency Agreement.

What debts can be included in a Personal Insolvency Agreement?

A Personal Insolvency Agreement can include 'provable debts,' which are debts that entitle the creditor to participate in dividends paid in a bankrupt estate. Typically, these include unsecured debts such as credit card debt, personal loans, medical bills, and other similar obligations. However, secured debts (like home loans or car loans) and certain state debts (such as fines) cannot be included.

Can I include joint debts in a Personal Insolvency Agreement?

Yes.

While you can include joint debts in your Personal Insolvency Agreement, it's important to note that this agreement does not release the other person from their responsibility for the debt. They will still be liable for their portion of the joint debt.

Do all creditors have to agree to the Personal Insolvency Agreement Proposal?

No.

Not all creditors need to agree to the proposal. As long as creditors representing a majority (at least 50.01% in number and 75% in value) of those who vote and are entitled to vote accept the proposal, it becomes legally binding on all creditors.

Are there alternatives?

There may be alternative options available to you which should exhaust before you make your final decision to proceed with a Personal Insolvency Agreement due to the consequences of the agreement. These options may include a credit card balance transfer, debt consolidation loan, mortgage refinance or application for financial hardship with creditors.
During the Personal Insolvency Agreement process, your Customer Success Specialist will assess your financial situation and consider alternatives available before making a final recommendation of a Personal Insolvency Agreement.

If you are unable to afford the fees associated with engaging us for a Personal Insolvency Agreement, there is the alternative to approach a free financial counsellor in your area. Financial counsellors may be help you:
- Get a clear understanding of your overall financial situation,
- Explain what options you have in relation to your debts, including the advantages and disadvantages of all options available,
- May advocate or negotiate with your creditors, government agencies and others,
- Develop a budget and/or money plan, and
- Listen and provide emotional and physical support.

Financial counsellors can be invaluable in the debt management process, with their services being nonjudgmental, free, independent and confidential. Financial counsellors are not able to offer a Personal Insolvency Agreement, and offer support with Informal Creditor Arrangements due to financial hardship, or assist with Bankruptcy. To find a financial counsellor in your area, visit the National Debt Helpline website or call them on 1800 007 007.

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