Excluding a car from being realised in an IVA

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 being imposed on you.

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.

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. Some of the assets might have been described as "excluded assets".

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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