PERSONAL INSOLVENCY AGREEMENTS

IF A PROPOSAL IS ACCEPTED>

The 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.

IF THE PROPOSAL IS REJECTED>

If the proposal is rejected creditors will either:

-vote in favour of the debtor becoming bankrupt (the debtor does not have to accept this).
-leave it up to the debtor to decide how to resolve their financial difficulties.
If the proposal is rejected or lapses, the debtor cannot appoint another controlling trustee for six months without leave of the court.