An Individual Voluntary Arrangement is an alternative to bankruptcy, a flexible procedure where a debtor makes an offer to his creditors, which they accept, amend or reject.
Use the online form for free advice on Individual Voluntary Arrangements, or call 0800 018 6081.
Procedure
- A proposal is drafted by the debtor with the assistance of The Debt Counsellors, setting out the debtors circumstances, assets and liabilities, and the manner in which he/she proposes to deal with his creditors.
- When the proposal is complete an application for an interim order is made by lodging the documents with the Court having bankruptcy jurisdiction in respect of the debtor. This will result in the issuing of an Interim Order which prohibits the commencement or continuation of any legal process against the debtor or his estate until the Nominee considers the proposal to be both realistic and workable.
- The Nominee (A Licensed Insolvency Practitioner) will file a report into court which indicates if in his opinion a creditors meeting should be called. The Nominee then circulates all the debtors and creditors with the proposal.
- At the creditors meeting, a vote is held to decide on whether or not to accept the proposal. Seventy five percent (75%) in value of the creditors who are present or represented must vote for the proposal for it to be accepted.
- The Supervisor appointed at the creditors meeting then proceeds to administrate the proposal.
The benefits of an Individual Voluntary Arrangement
- Avoids the stigma of bankruptcy.
- You avoid being disqualified from acting as a director.
- Certain employment's require the debtor to be financially "responsible" and certain professions consider that bankruptcy automatically disbars the individual from acting as a qualified person of that profession.
- A Voluntary arrangement reflects favourably on an individual's financial responsibility by endeavouring to maximise the return to the creditors.
What is an Individual Voluntary Arrangement ?
The answer is simply:
