Alternative Options to Bankruptcy

Bankruptcy is not always the most appropriate option for some people and the alternatives should be carefully considered before filing for bankruptcy.

There are two common alternatives, debt agreements and personal insolvency agreements. These share some of the same features, including:

  • Affordable payment plans which bundle all unsecured debt repayments into one monthly payment
  • Flexible time periods
  • Protection from bankruptcy.

Some people need some flexibility and the ability to negotiate how much they can pay and how long they would like to perform the payments. However, there are some differences that need to be taken into consideration. Here are the basic requirements for the two alternatives.


These are available for those who earn less than $105,009 before taxes and owe less than $140,012 to creditors combined and own assets less than $280,025 are eligible to apply for a debt agreement.

Specifications for a Debt Agreement

Individuals who apply for a debt agreement must acknowledge that their name will be listed in a National Insolvency database, also known as the NPII. Additionally, credit will be impaired for at least five years. This will also go on record as an act of bankruptcy.

Specifications for a Personal Insolvency Agreement

All assets will be controlled by a Controlling Trustee while the proposal is being considered by creditors. Like with a debt agreement the individual will be listed on the NPII and their credit will also be affected for five years. Whilst subject to a Personal Insolvency Agreement people cannot manage a corporation and act a director.

For more information regarding your alternatives, contact CRS Insolvency Services for more information. Please call 1800 210 073.