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Personal Insolvency Agreements (PIA)offer an Alternative to Bankruptcy

Question 27

Multiple Choice

Personal Insolvency Agreements (PIA) offer an alternative to bankruptcy.Which of the following is not a feature of a PIA?


A) Secured creditors,such as finance company with a right to sell the debtor's property,are not bound by a PIA.
B) There are no fees or administrative charges if the Official Trustee processes the agreement.
C) The trustee investigates the debtor's affairs and recommends to the creditors whether they should accept the proposal or proceed to bankruptcy.
D) Creditors must vote to approve a PIA.

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