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Topic 7. Insolvency - Bankruptcy. Insolvency - Bankruptcy. 1. Personal InsolvencyBankruptcy - property of an insolvent individual is held by a trustee who uses it to pay the debts Insolvency Act 1986. Insolvency - Bankruptcy. 1. Personal Insolvencya) The creditors each receive a proportion of debtb) The debtor protected from further legal actionc) The causes and conduct investigated.

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