The following information is brought to you by a lawyer from the David Chang Legal. Interview with Jihoon Chang.
There are three options for personal insolvency such as bankruptcy, debt agreement and personal insolvency agreement. These differences that will help you to decide whether or not it is the right option for you.
The main difference between a Personal Insolvency Agreement and Bankruptcy is that under a Personal Insolvency Agreement you do not have to worry about losing your home as it will be protected. Whereas Bankruptcy works by selling your assets to pay your debts, a Personal Insolvency Agreement is instead a legally binding payment arrangement. So as long as you adhere to the terms of the Personal Insolvency Agreement, you will not have to worry that your Trustee will try to have your home sold.
Another important difference is the fact that you are free to travel overseas if you are in a Personal Insolvency Agreement. This factor is extremely important for those people who are required to travel for their employment.
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