Challenging an individual voluntary arrangement (IVA)

Produced in partnership with James Hannant of Guildhall Chambers

Practice notes

Challenging an individual voluntary arrangement (IVA)

Produced in partnership with James Hannant of Guildhall Chambers

Practice notes

Grounds to challenge an individual voluntary arrangement

An application can be made to challenge the approval of an individual voluntary arrangement (IVA) on one or both of two grounds:

•
that the creditors’ decision approving the IVA unfairly prejudices the interests of a creditor of the debtor
•
that there has been some material irregularity at or in relation to the creditors' decision procedure

The burden of establishing either ground sits with the party making the challenge.

Entitlement to challenge an IVA

A creditor is entitled to challenge an IVA if they:

•
were entitled to vote in the creditors' decision procedure, or
•
would have been entitled had they had notice of the creditors' decision procedure

A challenge to an IVA may only be pursued in accordance with the statutory scheme, albeit that the very existence of an IVA can be disputed outside of that statutory framework.

Time limit to challenge an IVA

An application to challenge an IVA may not be made:

•
after the end of the period

James Hannant

Guildhall Chambers

James specialises in commercial litigation with an emphasis on both corporate and personal insolvency. He is frequently instructed by officeholders, directors and creditors in relation to a number of aspects of insolvency law. These include winding-up petitions, transaction avoidance claims and misfeasance claims. He also undertakes personal bankruptcy work which has included annulment applications, transaction avoidance claims and possession and sale applications.

In addition, James’ has a varied commercial practice which incorporates disputes relating to the sale and supply of goods and services, contractual claims and matters involving aspects of the law of agency and guarantee claims.

James has spoken at a number of seminars and events including those run by R3.

Jurisdiction(s):

United Kingdom

Key definition:

Individual Voluntary Arrangement definition

What does Individual Voluntary Arrangement mean?

An alternative to bankruptcy whereby a debtor enters into a binding arrangement with his creditors to compromise his debts.

��Ƶ