To enter into a personal insolvency agreement (PIA), the process begins with you appointing a controlling trustee.
Your trustee will:
- assist you with making an offer to your creditors
- recommend options to your creditors
- prepare the proposal and send it to your creditors to vote on
- arrange a meeting of creditors within 25 – 30 days to vote on your proposal.
Before you apply
Make sure you have considered the following:
- Compare the formal options
- What is a personal insolvency agreement?
- What are the consequences of a personal insolvency agreement?
For help with setting up a PIA see the Official Receiver Practice Statement 4 - Setting up a PIA.
Find contact details for registered trustees.
Voting on your proposal
You proposal will be considered at the creditors' meeting. For creditors to accept the PIA proposal, a special resolution is required. A special resolution is a vote to accept the proposal by a majority in number of creditors and 75% of the dollar value.
If your proposal becomes a personal insolvency agreement:
- You must comply with the terms of the agreement and ensure you complete it by the due date.
- If you have problems making payments, talk to your trustee as soon as possible.
- Your trustee informs creditors on the progress of your agreement.
- Your trustee deals with the payments as set out in the agreement.
If your creditors reject your PIA proposal:
- We notify you and your creditors of the outcome.
- The result appears on the National Personal Insolvency Index (NPII) permanently.
- You can't appoint another controlling trustee for 6 months without the courts permission.
- Your creditors are able to continue recovery action. If the debt is over $10,000, a creditor can apply to the court to make you bankrupt.