A Personal Insolvency Arrangement (PIA) is an insolvency solution for people with unsecured and secured debts, i.e. can include your home mortgage or other mortgages.
Secured debt is a debt backed or secured by an asset (e.g. a housing loan where a house is mortgaged to secure the loan debt).
It is a formal agreement with creditors that will write off some unsecured debt and restructure any remaining secured debt, while keeping the person in their home where possible. The objective is that once your successfully complete a PIA, then you remain in ownership or occupation of your home with only an affordable mortgage remaining to be paid.
You work through a Personal Insolvency Practitioner to reach an agreement with your creditors on an acceptable level of payments and this is then approved by the court and becomes legally binding on all.
The length of time you are in the arrangement depends on your personal financial situation, some of our clients exit the agreement within 3 months based on a lump sum settlement, some work though for 6 years based on monthly payments.