Personal Insolvency

What is Personal Insolvency?

A personal is considered insolvent when they do not have enough money to service their debts.

A Personal Insolvency Agreement (PIA) is a formal option available to help you deal with unmanageable debt.

A PIA may involve on or more of the following, which will result in creditors being paid in part or in full:

  • A lump sum payment to creditors either from your own money or money from third parties (eg. family or friends)
  • Transfer of assets to creditors or the payment of the sale proceeds of assets to creditors (this could include deferral of repayments)
  • A payment arrangement with creditors (this could include deferral of repayments)

Impacts of entering into a Personal Insolvency Agreement:

  • When you appoint a controlling trustee, you commit an ‘act of bankruptcy’. A creditor can use this to apply to court to make you bankrupt.
  • Even if your attempt to set up a PIA fails, the appointment of a controlling trustee and the setting up of a PIA will still be recorded on the NPII forever.
  • Your details will also appear on a record held by a credit reporting organisation for up to five years – or longer in some circumstances.
  • Once you have executed a PIA, you are automatically disqualified from managing a corporation until the terms of the PIA have been complied with.

Who can become Insolvent?

Both individuals and businesses can become insolvent. Personal insolvency refers to the individual situation when a person can no longer pay their debts as they become due.

How do you become Insolvent?

Similar to bankruptcy, there are varying reasons why a person becomes insolvent and quite often a combination of circumstances including but not limited to: personal relationship breakdowns; health concerns; loss of employment; debt issues etc.

How can Offermans help?

Experience: At times of high stress, the peace of mind in knowing your financial future is in the hands of experienced experts can mean the world.

Expertise: Entering into an effective PIA that provides the best possible solution for you and your financial future is our highest priority.

Ethics: Our confidential and professional service will provide you with the answers you need to make informed decisions about your financial future.

The Process

In a few steps our team can help make sense of your situation, formulate a plan that’s right for you and put it in place to achieve a solution that achieves your financial future free from unpayable debts.

  • Confidential & complimentary 1-hour consultation
  • Quote for services specific to your individual needs
  • Offermans to Develop Strategy
  • Offermans implements strategy
  • You achieve peace-of-mind and financial freedom