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If you are dealing with unmanageable debt, or even facing bankruptcy? There may be a suitable solution for you.

Part X (10) Personal Insolvency Agreement

This is one option available to you. This is a legally binding agreement that can give you a more flexible way of making an arrangement with creditors in order to settle debts without becoming bankrupt.

Appointed Trustee

A Personal Insolvency Agreement involves appointing a Trustee to take control of your property and to negotiate with your creditors. 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 to vote on your proposal
  • Inform creditors on the progress of your agreement
  • Deal with the payments as set out in the agreement

Terms of Agreement

If the terms of the agreement allow it:

  • you may retain your assets (such as your house or car)
  • you may continue to run your business

Offers to your creditors may be to pay part or all of your debts by installments or a lump sum.

The length of a Personal Insolvency Agreement will depend on the arrangement with your Trustee and Creditors.


A Personal Insolvency Agreement is one option with no debt, asset, or income limits in order to be eligible.

To be eligible, you must have not proposed another Personal Insolvency Agreement in the previous six months. You must also have an Australian residential or business connection.

This formal agreement can provide relief if you are unable to manage your debts. However, as with bankruptcy, there are consequences to consider before entering into a Personal Insolvency Agreement.

Stephens & Tozer have assisted individuals and businesses faced with overwhelming debt. We understand that being in this situation can be frustrating.

If you are in this situation, help should be sought without delay. Be informed of your options and gain control of your situation.

25 March 2021

Category: All / Bankruptcy / General News / Insolvency