Guildhall Chambers
4 Experts
3 Contributions by Guildhall Chambers Experts
PRACTICE NOTES
Grounds to challenge an individual voluntary arrangement
You may apply to contest the approval of an individual voluntary arrangement (IVA) on either or both of two bases:
that the creditors’ resolution endorsing the IVA unfairly harms the interests of a creditor of the debtor
that a material irregularity occurred at, or connected with, the creditors’ decision process
The onus of proving any such ground lies with the challenger.
Be aware that the new IVA Protocol covers all consumer IVAs proposed on or after 1 July 2025, reshaping the context in which these challenges will be assessed. This will influence how any application is viewed in practice...
Restructuring & Insolvency
PRACTICE NOTES
A demand for payment
A payment demand is a formal notice served pursuant to the contractual provisions that underpin the liability the issuing party intends to enforce. Such a demand is required where the contract expressly stipulates that issuing a demand is the step that crystallises a party’s duty to pay under the agreement. Situations in which this commonly arises include:
where a creditor seeks to realise and enforce its security
where there is a default under an ‘on demand’ facility
where a party intends to rely upon or call on a guarantee; and
where non-payment of a demand constitutes an event of default under the contract
The effects and implications of issuing a demand may encompass:
crystallising a cause of action that entitles a party to begin legal proceedings
starting the running of the applicable limitation period
fixing and confirming the date from which a lender’s right to repayment of the loan falls due;
Restructuring & Insolvency
PRACTICE NOTES
What is a DRO?
Debt Relief Orders are a newer, streamlined route to clear the slate for people who cannot afford to go bankrupt. A DRO is granted in relation to qualifying debts. A qualifying debt is one that is:
for a liquidated amount payable now or at a future date
unsecured
not an excluded debt
Under the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, r 9.2, an excluded debt means:
any fine for an offence, or an obligation arising from an order in family proceedings, or a maintenance assessment or maintenance calculation under the Child Support Act 1991
any obligation under a criminal confiscation order
student loans
damages relating to the death of, or personal injury to, any person
a crisis loan or budgeting loan made under the Social Security
Restructuring & Insolvency
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