Protection from your creditors The PIP will arrange the PIA for you and negotiate with your creditors on your behalf. This should put an end to any demands from your creditors for unpaid debt – no more phone calls, letters or visits.
Affordable repayments Under the PIA: you may agree to repay a percentage of your overall debts that you can afford in one monthly payment over a given period of time.
No surprise changes: A PIA is a legally binding agreement between you and your creditors; this means that it cannot be changed without the agreement of both parties, so there will be no surprise changes such as additional interest or charges added along the way.
Reasonable standard of living guaranteed: While you are making these repayments, you are entitled to a reasonable standard of living. This includes food, clothing, education, health care and a modest allowance for savings. Under the ISI model, this means a higher standard than merely at a subsistence level, which people often exist on when in debt. You will not be told how you should spend your allocated reasonable living expenses, so you are still in control of your spending.
Peace of mind: Once your final agreed monthly repayment is made and you have kept to the terms of the agreement, your creditors will write off your remaining unsecured debt and what is left of your secured debt will be restructured