|
Occurs in lieu of bankruptcy.
Individual is unable to pay all debts.
Personal guarantees provided for company debts are called up.
Individual receives letters of demand, writs and/or bankruptcy notices from creditors, debt collectors or solicitors.
|
An individual who is insolvent enters into a formal agreement with creditors.
The agreement is flexible and the terms may be negotiated between the individual and creditors.
The Part X Personal Insolvency Agreement is administered by an independent expert, a Registered Bankruptcy Trustee.
The individual is generally released from provable debts .
|
For Individual
It is binding upon all parties.
The restrictions of bankruptcy are avoided.
Provide relief from debt problems and extinguish existing debts.
Personal Insolvency Agreements are flexible.
Can start life afresh, free of debt.
For Creditor
Often provides a higher and quicker dividend than under bankruptcy.
The Personal Insolvency Agreement is binding upon all parties.
Uncertainty is crystallised.
Personal Insolvency Agreement's are flexible.
The Personal Insolvency Agreement is generally finalised sooner and is less costly than bankruptcy.
The individual's financial affairs are subject to an investigation.
|
