Bankruptcy Alternatives · independent guidance since 1988
Bankruptcy isn’t the only way out of personal debt.
Debt agreements, personal insolvency agreements and negotiated deals, explained plainly so you can compare them properly.
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If you can’t pay your debts, bankruptcy is the option everyone has heard of, but it’s often not the only one and not always the best. A debt agreement under Part IX of the Bankruptcy Act lets you offer creditors an affordable amount, usually over up to three years, provided your debts, assets and income sit under the limits AFSA sets. A personal insolvency agreement under Part X has no such limits and suits people with higher debts or assets they want to keep, but a registered trustee runs it and creditors have to vote it in. And sometimes the better answer is informal: a negotiated settlement or payment arrangement that never touches the Bankruptcy Act at all. Each one has a different effect on your home, your income, your credit and your ability to run a company. We lay them side by side, coordinate the one that fits, and tell you straight when bankruptcy really is the cleanest option.
Plain-English FAQ
What’s the difference between a debt agreement and a personal insolvency agreement?
A debt agreement is for people whose unsecured debts, assets and after-tax income are under AFSA’s limits. You pay an agreed amount, usually over up to three years. A personal insolvency agreement has no limits, so it suits larger debts or situations with assets to protect. It’s run by a registered trustee, and it needs creditors holding at least 75% of the debt by value, and a majority by number, to vote for it.
Will these show up on my record?
Yes. Both debt agreements and personal insolvency agreements are recorded on the National Personal Insolvency Index permanently, the same as bankruptcy, and they affect your credit file. A negotiated settlement outside the Act doesn’t go on the Index.
Can I keep running my company?
It depends on the option. Bankruptcy disqualifies you from managing a company. A personal insolvency agreement also restricts you until its terms are met. If you’re a director, raise it on the first call, because it can change which option we’d recommend coordinating.
Talk it through — no cost, no pressure.
Pick a time that suits you, by phone or video. We’ll talk through your situation and your options, privately. Since 1988.
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