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To firstly gain an understanding of Individual
Voluntary Arrangements and their contents, click
here.
The main attraction of an Individual
Voluntary Arrangement proposal, is that you propose how to
settle the debts included within the arrangement, without
the restrictions of bankruptcy.
An Individual Voluntary Arrangement proposal
must include details of all assets and liabilities of the
debtor proposing the arrangement and, if agreed, is a legally
binding contract. This has the effect that the creditors bound
by such an arrangement can not separately take enforcement
action against you outside of the arrangement.
You must, however, ensure that all
of your creditors are included within the arrangement, as
to exclude one creditor would mean that they are free to take
any action against you that they deem fit in the event that
you do not pay the sums due to that party.
Even though all of your assets have been
disclosed within the proposal document, it does not mean however,
that these assets must be realised by the Supervisor of the
arrangement.
The Supervisor only has the power to
realise those assets included by the debtor, in the proposal.
If, therefore, your car is needed for personal or business
use, you can exclude it from the assets to be realised simply
by informing the creditors in the proposal that the asset
is not to be realised. You must, of course give a reason for
excluding the asset as your creditors will still be looking
to achieve a material return from the Individual Voluntary
Arrangement.
The same premise applies to all assets
such as stock, work in progress, trade debtors etc.
Clearly, your proposal must be attractive
to the creditors and offer a reasonable return in order for
them to consider accepting such an arrangement.
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