If you want to avoid Bankruptcy, then it is best to look for an alternate personal insolvency solution. Here at CRS Insolvency Services, we offer two personal debt solutions which are both worth considering, depending upon your personal circumstances: Debt Agreements and Personal Insolvency Agreements.

Debt Agreement

A Debt Agreement is a formal arrangement between you and your unsecured creditors. We help to negotiate a payment plan in which you propose to pay a certain amount of a period of time. It usually lasts for 3 to 5 years.

The good thing about a Debt Agreement is that creditors will usually accept less than 100 cents in the dollar meaning that you will have to pay less than the total debt. Any remaining balance after the Debt Agreement expires will be written off and no debt recovery action is allowed to be made against you for that amount.

All your debts will be consolidated into one debt so you only have to make on regular payment. Depending on your proposal, this could be weekly, fortnightly or monthly. All interest on your debts will also be frozen and you assets will be protected, meaning you won’t lose them.

Personal Insolvency Agreement

A Personal Insolvency Agreement (PIA) is very similar to a Debt Agreement. Likewise, with a Debt Agreement, a PIA is an arrangement with your creditors in which you pay an agreed sum over 3 to 5 years (usually).

It also means that any interest on debts will be frozen and the remaining balance at the end of the agreement is legally written off.

However, if you:

  • Earn more than >$83,169 (after tax) or >$116,117 (before tax for Australian citizens).
  • Owe more than a total of $110,893
  • Own assets worth more than $110,893 combined

Then you will need to enter into a PIA instead of a Debt Agreement.

To enter into a Debt Agreement, you will need to earn, owe and own less than the amounts stipulated above.

Compared to Bankruptcy


Under bankruptcy you will most likely lose your assets (unless they are under the statutory limits), whereas with a Debt Agreement or a Personal Insolvency Agreement your assets will be protected.


Under bankruptcy, your income will be assessed annually for compulsory income contributions (link to https://crsinsolvencyservices.com.au/income-contribution-calculator/), whereas with a Debt Agreement or a Personal Insolvency Agreement or income will not be assessed annually and your repayments under each agreement will not change if you get a pay rise.

Contact CRS Insolvency Services on 1800 210 073 to speak to one of our friendly and professional insolvency specialists today.