The Insolvency Act 1986 (amended by the Insolvency Act 2000 and the Enterprise Act 2002) introduced a new procedure allowing a debtor to enter into an agreement with his creditors for a full or partial repayment of the bankruptcy. This agreement is referred to as the Individual Voluntary Agreement (IVA) and can be concluded either before or after a bankruptcy decision is closed. If an IVA fails because a person cannot follow the repayments (or can agree on new terms with the trustee and creditors), then bankruptcy becomes a real possibility. Because a significant portion of the IVA`s reimbursements are spent on the payment of the candidate`s and the line`s expenses, those who have defaulted to an IVA often find that they have not paid as much debt as they had anticipated. Where a bankruptcy has not entered an IVA prior to bankruptcy and has assets or there is a clear potential for a proposal for an IVA, the examiner should draw the liquidator`s attention to the provisions of the voluntary agreement and, if necessary, make available to the bankruptcy a list of the local judicial administrators of the Rota of the official judicial administrator with whom he can discuss the matter. If the majority of creditors (more than 75% in value) vote in favour of it, the proposal is adopted. The chair of a meeting approving an individual voluntary agreement must provide the Secretary of State (IUCN, Birmingham) with details of the registration agreement. The outcome of the meeting should also be given to the court (only referral cases), the official recipient and any agent. In cases where there has been no injunction, it is the creditors who are informed of the result, not the court. The person may be a professional (for example. B accountant or lawyer) and if she goes bankrupt, it could prohibit them from working, so an IVA could be an alternative to ensure that they continue to have a job. A voluntary agreement with creditors provides flexibility for the debtor. It may include assets that are not normally available in the event of bankruptcy, such.B as the use of third-party funds or income from the debtor`s continuing trade or employment.

It gives the debtor more say in how his assets are treated, for example. B creditors may allow the debtor to exclude and retain certain assets such as his home. Finally, the restrictions that apply to a trustee in bankruptcy are avoided. Details of individual voluntary agreements are listed in a public registry called the Individual Insolvency Registry. It is unlikely that anyone will come across this information, but it is something that you have to be aware of. As a general rule, the official recipient should attend the referral hearing and/or report to the court. As a general rule, the report should be fairly short and should focus on the conduct of the bankruptcy trustee, any non-compliance with legal obligations, known (bankruptcy or related) violations, and details of a previous bankruptcy. The report should also determine whether or not a return has been filed, provide succinct information on known assets and liabilities, and provide an estimate of the official beneficiary`s taxes, costs and expenses.