Individual Voluntary Arrangement meaning

Where a scheme of arrangement, restructuring plan, company voluntary arrangement or individual arrangement is put forward in respect of a regulated firm (defined below), the Financial Conduct Authority (FCA) should be engaged at the earliest possible stage. The FCA serves as the conduct regulator for both financial services firms and for the financial markets across the United Kingdom. Under section 1B of the Financial Services and Markets Act 2000 (FSMA 2000), it is tasked with pursuing specified objectives, including one centred on consumer protection in practice. The FCA states its statutory aims as securing an appropriate level of protection for consumers and safeguarding and strengthening the overall integrity of UK financial markets, with the intention of limiting the volume of proposed compromises it deems unsuitable (see FG22/4 para 1.2). On 5 July 2022, the FCA issued guidance on compromises by regulated firms (FCA Guidance FG22/4 July 2022, updated January 2024), prompted by serious concerns that these mechanisms were being advanced and deployed by firms to sidestep redress due to customers...

This Checklist should be read in conjunction with the Practice Note: Block transfer orders—the law and practice. Read this Checklist alongside the Practice Note: Block transfer orders—the law and practice. There are three principal scenarios that necessitate a block transfer of office-holder appointments: where an office-holder dies on the retirement of an office-holder from practice where an office-holder is otherwise unable or unwilling to continue in office. This may happen if an office-holder moves firms, or loses their licence to practise as a result of regulatory action The Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, rr 12.35–12.38, govern applications to the court for the block transfer of cases from one office-holder to another. The block transfer application process applies to the following types of appointment: compulsory liquidation (winding up by the court) voluntary liquidation (both members’ voluntary liquidations and creditors’ voluntary liquidations) administration bankruptcy voluntary arrangement (both company voluntary...

BPF CVA red flag clauses - insolvency engagement guidance (Jan 2020) The British Property Federation (BPF) is the trade body for the UK real estate sector and strongly urges potential promoters of a company voluntary arrangement (CVA), together with their nominees, to engage with the BPF before any CVA proposal is circulated. This dialogue enables representatives of the landlord community to pinpoint matters within a CVA that may require action, thereby helping to maximise the overall prospects of approval. Such engagement should (the BPF stresses) be in addition to—and not a replacement for—discussions with individual landlords (or groups of landlords) about issues specific to them. The Jan 2020 guidance contains a statement of best practice setting out how companies are expected to work with the BPF on prospective CVAs. A core element of that guidance is a list of what the BPF regards as the top 10 ‘red-flag’ clauses for landlords. The BPF advises landlords considering a vote on a proposed CVA to watch for these provisions and requests...

In this issue: Key R&I developments Corporate insolvency Restructuring Directors and insolvency Insolvency litigation Financial institutions R&I in Scotland Daily and weekly news alerts Corporate Rescue and Insolvency (October 2025) Key dates for restructuring and insolvency professionals New content Key R&I developments Insolvency Service announces update on INSSight system rollout The Insolvency Service confirms that deployment of its new internal case management platform, INSSight, will start in late October 2025 and continue into early November 2025. INSSight will support Official Receiver Services and Estate Accounts, including banking activities, and will run alongside the existing ISCIS Online service, which will remain available during transition. While the rollout is underway, users may face delays processing cheque or BACS payment requests, posting receipts to the Insolvency Service Account (ISA), and undertaking bulk case transfers. The Individual Insolvency Register will stay accessible, although there will be a short pause on registering new Individual Voluntary...

Snoozebox Ltd v Health and Safety Executive and another [2023] EWHC 851 (Ch) What are the practical implications of this case? The immediate takeaway is that, where uncertainty exists, creditors should lodge a proof in a CVA upon receiving notice, or at the very least engage with the CVA nominees ahead of the vote. The central difficulty for the Crown—HSE being treated as its emanation—was its non-participation in the CVA. As its inquiries had not concluded at that stage, it is unsurprising the HSE did not regard the contingent liability as sufficiently concrete to justify taking part. Indeed, attempting to quantify a prospective fine before any inquest would appear counter-intuitive to most prosecutors. Set against that, the judgment underscores the expansive modern scope of provable contingent debts, particularly following Re Nortel GmbH [2013] UKSC 52. The more thought-provoking point raised is a normative one. It is suggested that the case exposes an unwarranted distinction between corporate and individual offenders. Fines imposed over...

Effect of IVA on unsecured creditors The consequences flowing from approval of an individual voluntary arrangement (IVA) are set out in section 260(2) of the Insolvency Act 1986 (IA 1986). Under that provision, once an IVA is approved it: is deemed to have been made by the debtor at the moment the creditors decided to approve the IVA proposal; and binds, as if they were a party to the arrangement, every person who, in accordance with the rules, was entitled to vote when the creditors decided to approve the proposal, or who would have been so entitled had they received notice of it. An IVA becomes operative by creditor approval alone—no court order is required to bring it into effect. In legal terms, the arrangement operates as though a consensual agreement had been concluded between the debtor and each creditor at the time of approval (see Lloyds Bank plc v Ellicott at para [51]). By virtue of IA 1986, s 260(2), that...

Miscellaneous fees applicable to all insolvency processes Court fees are due when initiating certain insolvency procedures and throughout an insolvency, typically for defended actions against respondents brought by insolvency practitioners. Below we outline the present court fees payable across a range of common situations arising in insolvency work. This Practice Note does not cover the fees for claims brought under CPR 7 or CPR 8. The applicable fees are prescribed by the Civil Proceedings Fees Order 2008, SI 2008/1053, as amended, most recently by the Court and Tribunal Fees (Miscellaneous Amendments) Order 2025, SI 2025/351, with effect from 8 April 2025. The numbers shown in the left-hand columns of the tables below correspond to the paragraph numbers in the Schedule to the Civil Proceedings Fees Order 2008, SI 2008/1053. Cheques must be made payable to ‘HM Courts & Tribunals Service’ or ‘HMCTS’. If there is any uncertainty about the correct fee, contact the court for clarification. For general guidance on court fees, see Civil and Family Court...

Alongside the more familiar company voluntary arrangements (CVAs) and individual voluntary arrangements (IVAs), insolvency law allows insolvent general partnerships to propose compromise terms to their creditors. Such arrangements are called partnership voluntary arrangements (PVAs). When considering any proposal of this kind, partners should remember that they remain fully and personally responsible for all partnership liabilities. Accordingly, in the vast majority of cases it is prudent for each partner to put forward an IVA as well, in order to ensure their own position is comprehensively safeguarded. Applicable legislation Part II of the Insolvent Partnership Order 1994 (SI 1994/2421) (IPO 1994), as modified by the Insolvent Partnership (Amendment) (No 2) Order 2002 (SI 2002/2708), applies the CVA regime in Part I of the Insolvency Act 1986 (IA 1986) to insolvent partnerships via a PVA (IA 1986, s 420). The IPO 1994, SI 1994/2421, also extended the then IA 1986, Sch A1 to partnerships, with adjustments, so that the moratorium procedure could be used. IA 1986, Sch A1, together with IA...

Introduction I, [ insert debtor's name ], invite my creditors to consider an individual voluntary arrangement (IVA). From the attached estimated statement of affairs, it is apparent I am insolvent: I cannot pay my debts as they fall due, and my liabilities outweigh my assets. I face two options—either petition for my own bankruptcy or propose an IVA to my creditors. I first reviewed my position with my Nominee, [ insert nominee's name ], on [ insert date of meeting ], who advised that I obtain independent insolvency advice. My Nominee has explained all available debt resolution processes; having reflected on that advice, I believe an IVA would benefit both my creditors and me. I outline below why an IVA would be advantageous: The total funds achievable through the IVA are higher than those likely in my bankruptcy. The costs of administering the IVA are lower than those that would arise in my bankruptcy...

Apart from minors and those lacking mental capacity, a testator is, in principle, generally free to choose any executor. That said, a court is unlikely to grant representation to a bankrupt or insolvent individual, save where the testator was aware of the bankruptcy when naming that executor in the Will. At present, there is no bar on appointing a personal representative who has been discharged from bankruptcy or insolvency, this extends to someone released from an individual voluntary arrangement. Refer to Practice Note: Definition of a personal representative, particularly the section ‘Bankruptcy and PRs’ for further guidance and detailed discussion on this...