After adoption, unsecured creditors are bound by the agreement, whether or not they are in favour of the proposal. Unsecured creditors exchange their right to charge the debtor in exchange for a dividend from the funds or real estate made available under the proposal. With a team of experts from across Australia to discuss your situation, RSM can help you with your personal insolvency contract requirements. Please visit our sites or contact your insolvency expert on site. You appoint a supervisory agent who will take control of your assets and make a proposal for your creditors. A meeting of creditors must be held within 25 days of the appointment of the supervisory agent (or within 30 days if they are appointed in December) at a time and place favourable to creditors. It is more usual for a liquidator to propose a composition. A composition is an agreement to provide funds to the administration to be available to creditors and administrative costs. It is possible to pay for funds over a period of time; However, many agents will recommend making the payment in the event of acceptance in order to strengthen the security of creditors.
Sometimes it takes time for creditors to be informed by the supervisory agent and their documents to be changed. If you continue to contact them, let them know that you have entered into a personal insolvency contract and contact the registered agent. You can also give us your contact information. A Part IX debt contract ends when the debtor has fulfilled all commitments and payments to the creditor. The debtor will then be relieved of any debt covered by the debt contract. The National Personal Insolvency Index (NPII) is updated as soon as your administrator informs the official recipient of the execution of all commitments and payments. An agent (who may be different from the supervisory agent, but who must be a registered agent or the Australian Financial Security Authority (AFSA) is responsible for managing the agreement. Even if your attempt to set up an IAP fails, the appointment of a supervisory agent and the implementation of the IAP will be recorded forever on the NPII.