PERSONAL INSOLVENCY AGREEMENTS PART 2 OF 6

How Does It Work?
The debtor appoints a controlling trustee to take control of their properly and put forward a proposal to creditors. Only a registered trustee, the official trustee (ITSA) or a suitably qualified solicitor can act as a controlling trustee.
The controlling trustee examines the proposal, makes enquiries into the debtor's affairs and reports to creditors. The report will advise creditors of the amount they can expect from the proposal compared to the amount they could expect if the debtor became bankrupt, make a recommendation whether it is in the creditors interest to accept the proposal as opposed to the debtor becoming bankrupt. The creditors are entitled to ask questions of the controlling trustee and share information with them about the debtor's affairs.

A creditor's meeting is held within 25 working days of the controlling trustee's appointment 30 working days if appointed in December. At a time and location convenient to creditors. If unable to attend, a creditor can be represented by a proxy or attorney, participate by telephone if facilities are available.
The debtor must attend the meeting unless excused by the trustee. the creditors may ask the debtor questions before deciding how to vote. At the creditors meeting, creditors consider the proposal. Acceptance requires a yes vote from a majority of 75% of the dollar value of the voting creditor's debts.