New research has revealed that personal insolvency agreements (PIAs), or Part X agreements, are surging in popularity over bankruptcies to effectively negotiate legacy debts.
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Based on statistics from the Australian Financial Security Authority (AFSA), PIA numbers had almost reached pre-COVID-19 levels, which demonstrated a growing trend in debt management solutions.
Data highlighted in the first half of this financial year, 87 PIAs had been recorded, following 163 PIAs recorded in the 2024 financial year.
Malcolm Howell, partner of insolvency firm Jirsch Sutherland, said the uptick in PIAs could be attributed to multiple factors.
“We attribute the uptick in…
