Personal Insolvency Agreements

Personal Insolvency Agreements

Formal arrangements that provide a better return for creditors than your bankruptcy

Personal Insolvency Agreements

One of the key alternatives to bankruptcy is a Personal Insolvency Agreement.

This involves an insolvent debtor appointing a Controlling Trustee who assists in preparing a formal proposal to the debtor’s creditors.

The Controlling Trustee is also required to undertake an investigation of the debtor’s affairs and prepare a Report regarding the proposal and the likely returns to creditors

This proposal is an alternative to bankruptcy and requires the approval of most (not all) creditors at a meeting.

The Partners of BPS Reconstruction have administered several hundred PIA’s and are able to advise on commercially sensible proposals to creditors under a Personal Insolvency Arrangement as an alternative to bankruptcy.


Insolvency is a highly specialised area of accounting and, practically, is close to a hybrid profession between commercial law and management consulting. The truth is that there is very little “number crunching” in insolvency work and lots of investigative research and asset recovery work.

Case Studies

Our client was a secured creditor to a solar panel retailer and installer operating in 3 States. Whilst our client had a nominee Director sitting on the Board of the Company, the information available was late, inaccurate and focussed on the wrong metrics.