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Fraser Frayne Insolvency Practitioners Limited
Old Canal Cottage
Bath BA2 8BS
Tel: 01761 437754
Email: info@fraserfrayne.co.uk
The IVA was introduced by the Insolvency Act 1986 as a useful alternative to bankruptcy.
The detail of what happens:
The Individual Debtor prepares a proposal usually, in practice, written by an Insolvency Practitioner who is appointed as Nominee by the Debtor. The proposal sets out the Debtor’s circumstances, income, expenditure, assets and liabilities and how it is proposed to deal with these and offer creditors some of their money back.
The Proposal is considered by a creditors’ meeting. This meeting now must be held as a virtual online meeting only, unless 10% of creditors by value, by number or 10 creditors object in which case an actual physical meeting will be held. Unsecured creditors may offer modifications and, so long as the Debtor is willing to accept those modifications, then the proposal as modified is accepted if more than 75% of unsecured creditors by value that vote, vote in favour of the proposal.
The Nominee, then becomes the Supervisor of the newly accepted Arrangement. Arrangements can be highly varied, but typically are for five years of monthly contributions at the end of which, if the Arrangement is complied with by the Debtor and concludes successfully, then the Debtor having paid some of his debt back to creditors as agreed, will be debt free and creditors will write-off the balance of the debt owed to them.
The Supervisor will, over the life of an Arrangement, report to Creditors at least annually and will make distributions to them as required by the Arrangement’s terms.
IVAs are often an excellent solution for Debtors with debts over £15,000 and, or with a significant asset they need to hold on to such as a house or for Debtors for whom an alternative procedure is not suitable or attractive. Below £15,000 of debt, it may be suitable to consider an IVA, but it may also be possible to consider a Debt Relief Order instead.
Couples can offer interlocking, ‘pooled’ IVA Arrangements as a practical means of dealing with households, businesses or shared debts which are very similar and shared and, or where income is shared.
We can, with our business partners, assist you in considering all your options and assess whether an informal or a formal solution to your debt problems is the best way to go.
This is, in many ways, a similar to the IVA procedure, but is designed to deal with partnerships and the resultant more complicated business structure.
This outline is general and may not apply to a specific Debtor’s circumstances for which an IVA or PVA may not be appropriate. The outline, views and suggestions set out are not intended to constitute professional advice, nor to be a substitute for specific advice.
Registered in England Co. No. 6934426 VAT No. 972 6786 64
Registered Office: Old Canal Cottage Dunkerton Bath N E Somerset BA2 8BS
Company Secretary: Jan Bartoszewski; Directors: Matthew Frayne BA, FIPA, FABRP; Fraser Frayne-Watt
Licensed Insolvency Practitioner licensed by the Insolvency Practitioners Association
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