Alternatives to Bankruptcy
What are Personal Insolvency Agreements (Part X)?
A Personal Insolvency Agreement (PIA), sometimes called a Part X agreement, is a formal, legally binding arrangement between you and your creditors.
Administered by a Registered Trustee, a PIA can help you:
- Avoid bankruptcy and its long-term restrictions
- Set a structured repayment plan suited to your income and assets
- Resolve debts more quickly than bankruptcy, often with higher repayments to creditors
Eligibility for a PIA generally applies if:
- Your debts are too large for a simpler debt agreement
- You have assets or income that can contribute to debt repayment
- You seek a negotiated solution with creditors rather than a bankruptcy declaration
During the process, HM Advisory works with you every step of the way — reviewing your finances, preparing the proposal, liaising with creditors, and managing the formal voting process. Our focus is to create a solution that protects your interests while ensuring creditors are treated fairly.
Informal Debt Agreements
For some individuals, a less formal approach may suit. HM Advisory can negotiate payment schedules directly with creditors, often freezing interest and settling debts over 3–5 years.
These arrangements are not listed on the National Personal Insolvency Register and generally do not impact your ability to travel, work or maintain homeownership.
Early advice matters. Take the first step.
With years of experience in personal insolvency, we combine technical expertise with a caring approach. We simplify complex processes, reduce stress and focus on solutions that allow you to regain control.
Contact HM Advisory today for a free, confidential consultation to explore alternatives to bankruptcy, Part X agreements and personalised debt resolution strategies.
We are here to help
If you require our services, please feel free to contact us for an initial consultation – this is free of charge and without obligation.
Victoria
Level 21, 114 William Street
Melbourne VIC 3000
PO Box 117
Collins Street West VIC 8007
T (03) 8866 7600
F (03) 9428 4152
Western Australia
Suite 4, Level 3
16 Victoria Avenue Perth WA 6000
PO Box 6243
East Perth WA 6892
T (08) 9334 7400
F (03) 9428 4152
Queensland
Level 14, 15 Adelaide Street
Brisbane QLD 4000
PO Box 13127
George Street Brisbane QLD 4000
F (03) 9428 4152
New South Wales
Level 2, 263 George Street
Sydney NSW 2000
PO Box Q904
Queen Victoria Building NSW 1230
F (03) 9428 4152
FAQs
Are PIAs (Part X Agreements) better than bankruptcy?
For many people, yes. They allow you to avoid the severe restrictions of bankruptcy, protect more of your assets and retain more control over your finances. However, suitability for alternatives depends on your income, assets and total debts. The only way to find out if you qualify? A professional assessment. It allows you to have all the facts and empowers you to choose the right solution.
Can I keep my home or car under a Part X agreement?
Often, yes. One of the benefits of these alternatives is that they can be structured to allow you to keep essential assets, unlike bankruptcy, which may require liquidation of non-exempt property. Your insolvency practitioner can advise what’s feasible based on your personal situation.
How do I start a Part X?
Start by speaking with a registered insolvency practitioner. They will review your debts, income, and assets, and explain options including Part X agreements, PIAs and other bankruptcy alternatives. Early professional advice is key to preserving your assets, reducing stress and regaining financial control.
Who qualifies for a personal insolvency agreement instead of bankruptcy?
PIAs are typically suitable for individuals struggling with significant debt but who have assets, income or a repayment capacity. You must provide full disclosure to your creditors and demonstrate that a structured arrangement offers a better outcome than bankruptcy. A registered insolvency practitioner guides you through eligibility and the proposal process.