For those seeking constructive independent advice on

Personal Insolvency

Business Recovery and Insolvency Practitioners


Individual Voluntary Arrangements (“IVA”)

An IVA is a contract between an insolvent individual and his or her creditors which allows the individual to delay or compromise the payment of debts.

The individual makes a formal proposal through a Licensed Insolvency Practitioner to his creditors to settle his debts in full and final settlement over a period of time, which may be five years.

Our experience enables us to construct a proposal which takes into account the interests of the debtor and the creditors.

The proposal has to be approved by creditors in excess of 75% of those attending and voting in order for this to be binding on all creditors.


The Alternative to an IVA

If an individual cannot pay his debts a bankruptcy may be most appropriate way forward to enable him/her to make a fresh start without the burden of debt.

It is also potentially more appropriate than an IVA or a Debt Management Plan depending on the circumstances of the individual. The bankruptcy usually lasts 12 months unless a bankruptcy restriction is applied.

A creditor who is owed at least £5,000 can present a bankruptcy petition to the Court, and if the debt remains unpaid at the date of the Court hearing, the Court may make a bankruptcy order against the person.

Role of The Trustee

Once the bankruptcy order is made the debtors assets vest in the trustee immediately upon his appointment.

The trustee will realise the bankrupt person’s assets and distribute the proceeds to creditors.

We are regularly asked by creditors to take appointments as a trustee in bankruptcy. We locate and realise assets falling into the bankruptcy estate and maximise the return to creditors.

A bankrupt can also propose an IVA if there are sufficient assets which will result in the annulment of the bankruptcy on the approval of the IVA.

Being Nominated

We can take over as Trustees in bankruptcy, if we are nominated by a majority of creditors and we also take appointments from the Official Receivers Rota.

In certain circumstances, there may be assets in the bankruptcy. Alternatively, the bankrupt may be able to introduce third party funds to propose an IVA, whereby the bankruptcy will be annulled when the IVA is approved by the creditors.

We can advise the bankrupt on the options available and if an IVA is appropriate depending on the individuals circumstances.