If the proposal is accepted:
a. Creditors are bound by the terms of the agreement. Secured creditors rights in relation to dealing with their security are not affected by a PIA.
b.A trustee is appointed to administer the agreement. Trustee may differ from controlling trustee but must be a registered trustee or the official trustee.
If the proposal is rejected:
a. Vote in favour of the debtor becoming bankrupt. Note: the debtor does not have to accept this.
b. Leave it up to the debtor to decide how to resolve their financial difficulties.
Note: if the proposal is rejected or lapses, the debtor cannot appoint another controlling trustee for six months without leave of the court.
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