A Personal Insolvency Agreement (PIA) or Part 10, is a flexible way for you to come to an agreement with your creditors and settle your debts without becoming bankrupt. If you are finding that you cannot pay your debts as and when they fall due, a PIA may help.


Most PIA’s are made up of a regular repayment made over a period of time, usually 5 years.The sale of assets can be proposed however, this rarely happens.

The maximum creditors can receive is 100% of the current debt (no interest, or penalty fees).

The regular repayment is determined through a determination of your budget i.e. what you can afford to pay. This amount is usually less than what you are currently paying. Creditors must vote to accept your agreement and agree to accept the offer.


  • Your financial situation will be analysed to establish how much you can afford to repay.
  • Legal documents will be drawn up (a “188 Authority, Statement of a Affairs as well as a PIA).
  • A meeting of creditors will be held.
  • Creditors will then vote on the PIA.
  • Regular repayments are made to your Trustee who distributes the money to creditors.
  • The PIA is finalised.

There are disadvantages to a PIA that you should consider before carrying out:

  • It will appear on your credit history for five years.
  • Your name will appear on the NPII – a permanent government record.
  • Company directorship is no longer an option, for the duration of your agreement.
  • A PIA is a declaration of insolvency.

Personal Insolvency Agreements can be hard to understand. If you feel that a Personal Insolvency Agreement may be something you want to consider, call Debt Helpline today on 1300 802 905 and discuss the details with one of our debt consultants.

NB: Personal Insolvency Agreements are administered by Trustees.

Correct at the time of uploading on 24/02/2017