Shaw Gidley - Insolvency and Reconstruction

Individuals experiencing financial difficulty and wishing to avoid bankruptcy should consider a Personal Insolvency Arrangement (PIA) regulated by Part X of the Bankruptcy Act.

A PIA, as it is commonly referred to in the profession, is designed to allow the debtor to propose an arrangement with his or her creditors. The content of the proposal is very flexible and is often less onerous for the debtor than bankruptcy.

The following outlines the PIA process: -

Execution of Form 13, s188 authority commences the process;
A Registered Trustee must consent to act as the Controlling Trustee (CT) of your affairs at that time;
You will need to complete a statement of your affairs and provide a draft proposal to the CT;
The CT conducts an investigation of your affairs which culminates in a report and recommendation to your creditors;
A meeting of creditors is held, no more than 35 days from when the s188 Authority was executed;
Creditors by special resolution vote to accept or reject your proposal;
If the proposal is accepted it is executed by you and the CT, and enforced by the Trustee;
If it is rejected, the controlling trusteeship usually comes to an end.

Executing a s188 Authority is considered an Act of Bankruptcy, so in the event that your proposal is rejected a creditor can use it as a grounds to force you into bankruptcy. In most instances however, where a proposal fails, the individual will consider entering voluntary bankruptcy.

Click here to view our contact details, or submit your enquiry below.

It is also recommended that you visit the ITSA website.

Subject:	Enquiry for Personal Insolvency Arrangements
Name:
Phone:
Email:
Comments: