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Personal Insolvency Agreements
A Personal Insolvency Agreement (PIA) is a formal alternative to bankruptcy under Part X of the Bankruptcy Act. It lets an eligible individual put a proposal to their creditors about how their debts will be dealt with, administered by a trustee. Creditors vote on whether to accept it, so a PIA is not guaranteed and is not suitable for everyone, but where it works it can offer a more flexible outcome than bankruptcy.
WHO IS THIS FOR?
Individuals looking at alternatives to bankruptcy, advisers helping clients weigh up personal insolvency options, and creditors considering a PIA proposal.
IN DETAIL
A PIA is part of the Bankruptcy Act 1966, specifically under Part X (10). This legal framework provides a formal mechanism for individuals in Australia who are facing financial difficulties and wish to avoid bankruptcy by reaching an agreement with their creditors.
HOW TTJ CAN HELP
TTJ assesses honestly whether a PIA is a realistic option for the individual, helps shape a proposal that creditors might actually accept, and acts as trustee where suitable, running the creditor process and administering the agreement if it is accepted.
WHEN TO SEEK HELP
Worth exploring if debts have become unmanageable, if bankruptcy is on the table, if creditor pressure is building, or if a structured proposal to creditors might be a better fit than bankruptcy. Whether it is realistic depends on what can be offered and on the creditors.
OUR PROCESS
A PIA follows a defined path from assessment through to the creditors' decision and, if accepted, administration. The steps below show how TTJ generally works through one.
Important Considerations
A PIA should never be presented as a certain way to avoid bankruptcy or as guaranteed of acceptance. Eligibility, voting, proposal terms and the requirements of the Bankruptcy Act all depend on the circumstances and need review.
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Thyge Trafford-Jones
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Principal — ASIC Registered Liquidator (No. 458321) · AFSA Registered Trustee (No. 1582)
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Member, Australian Restructuring Insolvency & Turnaround Association (ARITA)
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Member, CPA Australia
TTJ Advisory is a registered business name of Restructure My Small Business Pty Ltd (ACN 670 511 476).
Liability limited by a scheme approved under Professional Standards Legislation.
© 2026 TTJ Advisory.
TTJ Advisory acknowledges the Traditional Custodians of the land on which we operate, live and gather as employees, and recognise their continuing connection to land, water and community. We pay respect to Elders past, present and emerging.
