Brendan
Sole traders need to be particularly wary of PIAs or DSAs if their business account is with a bank who is also owed monies, as the bank may exercise their right of set off, bounce cheques, cancel direct debits etc. The obvious solution would be for a sole trader to transfer their business to a limited company and ring fence the assets. If transferring a business, then it must be valued, and transferred at an arms length value.
Another solution might be to just simply open a new bank account with a bank that is owed no money by the debtor. (This might be the only solution to sole traders such as solicitors who may not incorporate their business.)
In general terms, a PIA could allow customers who have paid deposits to be treated "normally". However, any such depositor would have to be notified of the PIA etc.
Jim Stafford