Learn About Personal Insolvency Agreement
Sometimes due to unavoidable circumstances, when you owe some amount from your creditors, it may not be easy to be paid on the agreed period. This may lead to an agreement between you and the creditor on the period you can take before you pay your debt. This kind of agreement is called personal insolvency agreement. In simple terms, it is an arrangement to pay an agreed amount of money over a given period.
In most cases, your debts can be settled for less than what you owe and the balance will be written off successfully. A personal insolvencyagreement is therefore under the bankruptcy Act. This makes it a formal agreement and trusted registered personnel should oversee where it is applicable. Many people think that because it is under bankruptcy Act, it is a bankruptcy, which is not true. Instead, the agreement is an alternative project to bankruptcy.
Tips for solving up a personal insolvency agreement
In order for you to set up a workable personal insolvency ageement, you need to involve trusted controlling personnel first. The controlling personnel must be a registered bankruptcy trustee. You can also involve a solicitor to act as your controlling trustee. Appointing the trustee is done by signing a 188 authority. Once a 188 authority is signed, you subject your assets to your controlling trustee and he or she will investigate your financial affairs and make a good report to your creditors.
The reports may include your assets and liabilities and the summary of your current financial status. The trustee must recommend whether your proposed PIA is in the best interest of your creditors or not, and should give an opinion on it. Therefore, your controlling trustee will recommend your PIA proposal if it will provide your creditors with better result compared to if your account went bankrupt.
In Australia, many companies exist to offer personal insolvency help. To start the process, you just need to identify a reliable service provider. With many companies in the market offering such services, it is advisable to ensure that you work with a registered company with qualified staff to assist with personal insolvency issues. For example, when you consider taking a personal insolvency agreement, you can approach Debt Mediators personal insolvency help team to help you with constructive advice.
Selecting a wrong company for the process can lead to poor results and even ruin your chances of a successful outcome. Therefore, it is important to verify the reputation of the company that you engage in the process.
How to qualify for personal insolvency
Maybe you wonder if you qualify for a personal insolvency agreement. Yes, in order to qualify for the agreement, you must be unable to pay your debts as they fall due. In addition, your unsecured debts must have risen in value to more than $108,162.60. However, before you decide on whether to take the agreement or not, you need to involve an expert to determine if you really need it. Upon verification of financial status, the experts can direct you to a reliable service provider to assist you in your situation.
In Australia, go to https://www.debtmediators.com.au/ for more information about personal insolvency.