Personal Insolvency Agreements or Part X, is a formal way to deal with an individual’s unmanageable debt. This agreement generally involves coming to an arrangement with your creditors to settle the debts without having to become bankrupt. A legally binding agreement is entered into between the individual and the creditors, where the creditors are paid in full or in part – for this to be successful the creditors need to vote and accept the offer by 75% of the value voting in favour with a majority in number.