Menu(08) 9221 9339

Sheridans Chartered Accountants

  • Home
  • About Us
    • Vision Statement
    • Why Sheridans?
    • Testimonials
    • Useful Links
    • Our Rates
    • Concerns or Complaints
    • Community
    • Mental Health Support
    • Sheridans Out and About
  • Our People
  • Downloads
    • Sheridans Downloads
    • External Downloads
  • News & Info
    • Publications
    • Newsletters
    • Articles
    • Corporate Insolvency FAQ
    • Personal Insolvency FAQ
    • Presentations
    • Events
  • Creditor info
    • Current Appointments
    • Finalised Appointments
  • Contact us

(08) 9221 9339

general@sheridansac.com.au

  • Services For You
    • Bankruptcy
    • Personal Insolvency Agreements
  • Services For Your Business
    • Liquidations
    • Voluntary Administrations
    • Deeds of Company Arrangement
    • Receiverships
  • Litigation
Personal Insolvency Agreements

Personal Insolvency Agreements

A Personal Insolvency Agreement is a formal arrangement with creditors and is an alternative to bankruptcy.

A Personal Insolvency Agreement (“PIA”) is an arrangement between the debtor and their creditors whereby the debtor offers to pay creditors in instalments or in a lump sum either the full amount or part of the amount owing to creditors. Once creditors have accepted the debtor’s offer by special resolution, the PIA becomes legally binding.

How it works

The debtor appoints a Controlling Trustee to take control of their property and put forward a proposal to creditors.

The Controlling Trustee examines the debtor’s affairs and submits a report to creditors. The report informs creditors of the reasons for insolvency, and includes details of the proposal being made to creditors, comparing the amount creditors are likely to receive if they accept the PIA and what they are likely to receive if the debtor becomes bankrupt. The Controlling Trustees makes a recommendation in the report as to whether creditors should accept the proposal.

A creditors’ meeting is held to consider the proposal and Controlling Trustee’s Report. If the proposal is accepted, all creditors who received notice of the proposal are bound by the decision of the meeting. A Trustee is appointed to administer the PIA.

If the proposal is rejected, the creditors can vote on whether the debtor should petition for bankruptcy. However, this is not enforceable.

Free Initial Consultation

Contact us today for a free initial consultation to discuss your situation and how Sheridans can help you.
  • Show us that you are human to see the submit button.

  • Bankruptcy
  • Personal Insolvency Agreements
  • Home
  • About Us
    • Vision Statement
    • Why Sheridans?
    • Testimonials
    • Useful Links
    • Our Rates
    • Concerns or Complaints
    • Community
    • Mental Health Support
    • Sheridans Out and About
  • Our People
  • Downloads
    • Sheridans Downloads
    • External Downloads
  • News & Info
    • Publications
    • Newsletters
    • Articles
    • Corporate Insolvency FAQ
    • Personal Insolvency FAQ
    • Presentations
    • Events
  • Creditor info
    • Current Appointments
    • Finalised Appointments
  • Contact us

Sheridans, Level 9 40 St. George’s Terrace Perth WA 6000, PO Box Z5209 Perth WA 6831 Australia


Phone: (08) 9221 9339

Fax: (08) 9221 9340

Email: general@sheridansac.com.au

We acknowledge the Traditional Owners and Custodians of the Land on which we live and work, the Wadjuk Nyungar people. We pay our respects to Elders past, present and emerging.

Copyright © 2022 Sheridans · All rights reserved. No portion of this website maybe reproduced, copied or in anyway reused without permission from Sheridans