Part X Arrangements
Part X Arrangements
Part X of The Bankruptcy Act 1966 provides a formal administration using a registered Trustee or solicitor to administer the debtor's estate.
An arrangement under Part X is legally binding on all parties after its implementation and on completion of the agreement the debtor is released from his or her debts without having been declared bankrupt.
There are no income, asset or debt limits for Part X's. A proposal of this kind could take the form of money paid to creditors over time; assets given to creditors; operation of a business to repay debts; or a lump sum payment can be offered to settle all debts.
The Trustee investigates the affairs and reports to creditors, creditors then vote on the proposed arrangement at a meeting. There are significant fees associated with a Part X agreement.
Benefits for the Individual
The debt burden is removed without the stigma and consequences of bankruptcy. The debtor has on opportunity to start afresh.
Benefits for the Creditors
The creditors will receive a greater return than in the event of bankruptcy, with the payment of dividends often quicker and less costly.
What next?
Contact Financial Crisis Recovery for your free consulation to assess whether a Part X Arrangement is the best solution for you.
