Personal insolvency agreement
BRI Ferrier has extensive experience in personal insolvency agreements (PIAs), an alternative to bankruptcy. A PIA is a flexible but legally binding arrangement between a debtor and creditors that identifies the debtor’s property and income available to pay creditors’ claims. It also specifies how any realisations are dealt with.
A personal insolvency agreement is intended to provide creditors with a better return than bankruptcy. It is administered by a registered trustee in bankruptcy, who will ultimately pay a dividend to creditors, at which point the arrangement terminates, discharging the debtor from their liability.