Personal Insolvency Agreements (PIA)offer an Alternative to Bankruptcy

question 11

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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Definitions:

Short-term Memory

A cognitive function where a limited amount of information is held temporarily for use in ongoing tasks.

Displacement

In psychology, displacement is a defense mechanism that involves shifting feelings from an uncomfortable or threatening target to a more acceptable or less threatening one.

Consolidation

The neurological process by which memories become stabilized and stored in long-term memory after initial acquisition.

Decoding

The process of interpreting and understanding communication symbols and texts, often used in the context of reading and language comprehension.