PART 8INDIVIDUAL VOLUNTARY ARRANGEMENTS (IVA)
CHAPTER 2Preparation of the debtor’s proposal for an IVA
[Note: a document required by the Act or these Rules must also contain the standard contents set out in Part 1.]
Proposal for an IVA: general principles and amendment8.2
1
A proposal must—
a
identify the debtor;
b
explain why the debtor thinks an IVA is desirable;
c
explain why the creditors are expected to agree to an IVA; and
d
be authenticated and dated by the debtor.
2
The proposal may be amended with the nominee’s agreement in writing at any time up to the filing of the nominee’s report with the court under section 256, or the submission of the nominee’s report to the creditors under section 256A96.
Proposal: contents8.3
The proposal must set out the following so far as known to the debtor—
Assets |
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Liabilities |
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Nominee’s fees and expenses |
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Supervisor |
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Guarantees and proposed guarantees |
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Timing |
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Type of proceedings |
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Conduct of business |
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Further credit facilities |
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Handling of funds arising |
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Other proposals |
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Other matters |
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Notice of nominee’s consent8.4
1
A nominee who consents to act must deliver a notice of that consent to the debtor as soon as reasonably practicable after the proposal has been submitted to the nominee under section 256(2) or 256A(2).
2
The notice must state the date the nominee received the proposal.
Statement of affairs (section 256 and 256A)8.5
1
The statement of affairs which the debtor is required to submit to the nominee under either section 256(2) or 256A(2) must contain—
a
a list of the debtor’s assets, divided into such categories as are appropriate for easy identification, and with each category given an estimated value;
b
in the case of any property on which a claim against the debtor is wholly or partly secured, particulars of the claim and of how and when the security was created;
c
the names and addresses of the preferential creditors with the amounts of their respective claims;
d
the names and addresses of the unsecured creditors, with the amounts of their respective claims;
e
particulars of any debts owed by the debtor to persons who are associates of the debtor;
f
particulars of any debts owed to the debtor by persons who are associates of the debtor; and
g
any other particulars that the nominee in writing requires to be provided for the purposes of making the nominee’s report on the proposal to the court or to the creditors (as the case may be).
2
The statement must be made up to a date not earlier than two weeks before the date of the proposal.
3
However the nominee may allow the statement to be made up to a date that is earlier than two weeks (but no earlier than two months) before the date of the proposal where that is more practicable.
4
If the statement is made up to an earlier date the nominee’s report must explain why an earlier date was allowed.
5
The statement must be verified by a statement of truth made by the debtor.
6
Where the debtor is an undischarged bankrupt and has already delivered a statement of affairs under section 288100 the debtor need not submit a statement of affairs to the nominee under section 256(2) or 256A(2) unless the nominee requires a further statement of affairs to supplement or amplify the earlier one.
Application to omit information from statement of affairs delivered to creditors8.6
The nominee, the debtor or any person appearing to the court to have an interest may, if any information in the statement of affairs would be likely to prejudice the conduct of the IVA or might reasonably be expected to lead to violence against any person, apply to the court for an order that specified information be omitted from any statement of affairs required to be delivered to the creditors.
Additional disclosure for assistance of nominee8.7
1
If it appears to the nominee that the report to the court under section 256(1)101 or to the creditors under section 256A(3)102 cannot properly be prepared on the basis of information in the proposal and statement of affairs, the nominee may require the debtor to provide—
a
more information about the circumstances in which, and the reasons why, an IVA is being proposed;
b
more information about any proposals of the kind referred to in rule 8.3(w);
c
information about any proposals which have at any time been made by the debtor under Part 8 of the Act103; and
d
any further information relating to the debtor’s affairs which the nominee thinks necessary for the purposes of the report.
2
The nominee may require the debtor to inform the nominee whether and in what circumstances the debtor has at any time—
a
been concerned in the affairs of a company wherever incorporated or limited liability partnership which has become the subject of insolvency proceedings;
b
been made bankrupt;
c
been the subject of a debt relief order; or
d
entered into an arrangement with creditors.
3
The debtor must give the nominee such access to the debtor’s accounts and records as the nominee requires to enable the nominee to consider the debtor’s proposal and prepare the report on it.