This guidance is tailored specifically for official receivers. It is discretionary and not designed for use by third parties. This version was the most up to date guidance available to official receivers as at 11 March 2020
51. The Official Receiver’s Role in
Voluntary Arrangements
Chapter content
General
Company Voluntary Arrangements
Partnership Voluntary Arrangements
Pre-bankruptcy individual voluntary arrangements
Post bankruptcy individual voluntary arrangements
General
51.1 Introduction and definitions A voluntary arrangement involves a legally binding agreement in satisfaction of debts
or a scheme of arrangement of the company's/individual's affairs which may involve
restructuring, delayed or reduced payments of debts or an orderly disposal of assets.
The proposal is put to creditors and, if approved, its implementation is supervised by
a qualified insolvency practitioner or other authorised person. Part I of the Act
contains the provisions in respect of Company Voluntary Arrangements and Part VIII
contains the provisions in respect of Individual Voluntary Arrangements. The
Insolvent Partnerships Order 1994 provides for voluntary arrangements in respect of
partnerships and its members and parts I and VIII of the Act are applied accordingly.
The voluntary arrangement provisions are designed to provide an alternative to
winding up or bankruptcy proceedings. A voluntary arrangement may be entered into
before or after insolvency proceedings have been commenced.
51.2 Official Receiver's involvement
The official receiver should have no involvement with voluntary arrangements where
no winding-up or bankruptcy order is made. The exception to this would be where
the official receiver represents a creditor e.g. as liquidator of a creditor company.
The official receiver's involvement in post insolvency proceedings voluntary
arrangements should be limited and they should not take any steps designed to
frustrate any proposals made unless it is clear that an attempt is being made to
mislead the creditors. The official receiver should provide information where
necessary and may draw to the court's attention any difficulties or special
considerations of which they are aware.
51.3 Representations to the court The official receiver is most likely to become involved with an IVA if an interim order1
is sought where it is in order for them to draw to the court’s attention any particular
difficulties or special considerations which they believe the court may wish to be
aware of. For example, there may have been a special manager appointed who is
actively engaged in selling property and their remuneration may need to be taken
into account when the details of the arrangement are agreed. It is open to the court
to include provisions for such circumstances, and other matters concerning the
conduct of the bankruptcy, in the terms of an interim order, if granted2.
1. Section 252
2. Section 255(3)
51.4 Fast Track Voluntary Arrangements
(FTVAs)
FTVAs were introduced in 20041 to provide a streamlined 'fast track' individual
voluntary arrangement (IVA) procedure for use after a bankruptcy order has been
made. The official receiver was able to act as nominee and supervisor of an FTVA
provided that the debtor was an undischarged bankrupt at the time the proposal was
made.
They did not prove to be successful as a concept and only a very small number were
ever entered into. The provisions of the Act allowing FTVAs to be proposed were
repealed in May 20152, though there are provisions to allow for the conclusion of
FTVAs that had been proposed before that date.
All guidance relating to FTVAs has been archived.
1. Enterprise Act 2002 Section 264 and Schedule 22
2. Small Business, Enterprise and Employment Act 2015 Section 135
Company Voluntary Arrangements
51.5 General The company voluntary arrangement (CVA) procedure is set out in the Insolvency
Act 1986, Part I (as amended by the Insolvency Act 2000 (IA2000), the Enterprise
Act 2002 (EA2002) and the Small Business Enterprise and Employment Act 2015
(SBEEA 2015) and the Insolvency (England & Wales) Rules 2016, Part 2.
In particular, IA2000 introduced to the Act the option of a short moratorium for small
qualifying companies. Note that companies in liquidation do not have this option
available to them1.
1. Section 1A and Schedule A1.
51.6 The official receiver’s role where a
winding up order is made before
completion of the CVA Where a winding-up order is made, the official receiver should obtain details of any
previous arrangement to which the company may have been subject. When a
winding-up order intervenes before the completion of a CVA, the official receiver
should, as soon as possible, obtain from the supervisor the following using form
NPBB:
• a copy of the CVA proposal agreed by creditors
• a copy of the statement of affairs
• details of the realised and unrealised assets
• any other information which might assist with enquiries and in the protection of
assets.
The official receiver should establish the basis on which the supervisor holds any
assets of the company. In particular the official receiver needs to establish whether
the arrangement contains any provisions in accordance with which the assets are
held on trust for creditors who are bound by the CVA and, if so, whether that trust
survives the making of the winding-up order.
51.7 Dealing with the assets
The CVA can provide for the way in which assets are to be dealt with on the
termination of the CVA1. The effect of liquidation (either voluntary or compulsory) on
any trust created by a CVA will depend on the terms of the CVA. Any provision in the
CVA for what is to happen on liquidation should be followed by the official receiver
as liquidator.
Where there is no provision in the CVA for what is to happen on liquidation, the
official receiver should follow the decision of the court in NT Gallagher & Son
Limited2 wherein the Court of Appeal held that any trust created by the CVA will
continue notwithstanding the liquidation or failure of the CVA and must take effect
according to its terms.
The official receiver should notify the supervisor of his conclusion regarding any trust
as soon as practical in the expectation that the position will be agreed between them.
Where an asset is held on trust under the terms of the CVA, the asset will remain
vested in the company. As, generally speaking, on the making of the winding-up
order, the liquidator is the only person who can act for the company, it will fall to the
official receiver as liquidator (or any insolvency practitioner that replaces them in that
capacity) to realise assets held on trust by the company for the benefit of the CVA
creditors. This might necessitate some liaison with the supervisor of the CVA. The
official receiver should follow general guidance in dealing with these assets but with
appropriate modification. For example, when dealing with rights of action which form
part of the CVA assets, if it is necessary to seek the views of the creditors or to seek
additional funding to deal with a right of action, then only the creditors under the CVA
should be contacted, as they would be the beneficiaries if any action were to be
successful, post-CVA creditors not having a direct interest in the realisation, at least
initially.
Usually the CVA creditors can prove for so much of their debt as remains after
payment of what has been or will be recovered from the monies or assets held on
trust.
Although the1986 rules (rule 4.21A) allowed for the reasonable expenses of a
voluntary arrangement to be paid in priority to liquidation expenses, the 2016 Rules
contain no corresponding provision.
1. Rule 2.3(1) (u)
2. NT Gallagher & Son Limited [2002] 3 ALL ER 474
51.8 Appointment by court following
voluntary arrangement
If a winding-up order is made following a CVA, an insolvency practitioner who is fully
aware of the company’s circumstances will already be in office as supervisor, and it
may be good sense for them to be appointed as liquidator at the time the winding-up
order is made in order that he can commence the duties of liquidator immediately.
The court may appoint the supervisor in office at the date of the winding-up order as
liquidator of the company1. In these circumstances, the official receiver is still obliged
to comply with his statutory duty to gazette the order and may advertise it if they
think fit2. They must also provide information to creditors and contributories3. It is the
liquidator’s duty to issue proofs of debt to the creditors.
1. Section 140(2)
2. Rule 7.22(4) & (5)
3. Rule 7.48
51.9 Disqualification and prosecution Where a winding-up order follows a CVA the official receiver retains the obligation to
report on the conduct of the directors under the Company Directors Disqualification
Act 19861 and to make enquiries regarding the possibility that criminal offences might
have been committed, including offences connected with the proposal and the CVA.
1. Company Directors Disqualification Act 1986 Section 7a
51.10 Arrangement following winding-up
order A company liquidator may propose a voluntary arrangement after the
commencement of compulsory winding up proceedings1. The nominee may be the
liquidator or another insolvency practitioner. The official receiver should not make
such a proposal and where a CVA seems viable should seek the appointment of
another liquidator to make the proposal and deal with all matters relating to the
application.
1. Section 1(3) (b)
51.11 Stay of proceedings Where a CVA is approved on identical terms by both the company and its creditors1
and a winding-up order has been made against the company by the court, the court
may stay the winding-up proceedings and give any directions it thinks appropriate for
the future conduct of the winding up2.
1. Section 3
2. Section 5(3)
51.12 Assets to be handed over to
supervisor On the CVA coming into effect, the directors, liquidator or administrator must do all
that is required for putting the supervisor into possession of the assets included in
the CVA1.
1. Rule 2.39(1)
51.13 Expenses of the liquidation The supervisor must, out of the assets in his possession, discharge any balance due
to the official receiver or liquidator for remuneration, costs, fees and expenses
properly incurred and payable under the Act and Rules and any advances made in
respect of the company, or give a written undertaking to discharge that balance out
of the first realisation of assets. Sums due to the Official Receiver take priority over
sums due to an IP liquidator or an administrator.1
1. Rule 2.39(2) to (6)
51.14 Conversion of earlier proceedings
into liquidation A CVA is an insolvency proceeding as defined by the EC Regulation on Insolvency
Proceedings 20151. Where the liquidator of the main proceedings considers it to be
in the interest of the creditors in those proceedings he may apply to the court for the
conversion of any CVA, in relation to the company, in any other member state, to
winding up proceedings2.
1. Regulation (EU) 2015/848 of the European Parliament and of the Council of 20 May 2015 on insolvency proceedings (recast) Anne x A
2. Regulation (EU) 2015/848 of the European Parliament and of the Council of 20 May 2015 on insolvency proceedings (re cast) Article 51
Partnership Voluntary Arrangements
51.15 General The Insolvent Partnerships Order 1994 (IPO) provides for a voluntary arrangement
of an insolvent partnership1 and for voluntary arrangements of members of an
insolvent partnership2. Both corporate and individual members of a partnership may
enter into voluntary arrangements. Where a partnership voluntary arrangement
(PVA) is proposed it may be necessary to propose IVAs for the partners to run
concurrently with the PVA. A PVA should provide for both partnership creditors and
for the creditors of the individual/corporate members of the partnership. Part I of the
Act (Company Voluntary Arrangements) is applied to corporate members and Part
VIII of the Act (Individual Voluntary Arrangements) is applied to individual members
of a partnership, subject to the modifications mentioned in Article 5(1)3 and Schedule
1 to the IPO (as amended by the Insolvent Partnerships Amendment (No2) Order
20024, and the Insolvent Partnerships Amendment Order 20055).
1. The Insolvent Partnerships Order 1994 Article 4
2. The Insolvent Partnerships Order 1994 Article 5
3. The Insolvent Partnerships Order 1994 Article 11 and Article 5(1).
4. Insolvent Partnerships Amendment (No2) Order 2002 Articles 4 and 6, and Schedule 1.
5. Insolvent Partnerships Amendment Order 2005 Article 6.
51.16 Considerations for the official
receiver Where winding-up orders or bankruptcy orders are made against a partnership or its
members subject to a voluntary arrangement, the official receiver will need to look
carefully at all previous voluntary arrangements to determine whether the winding-
up/bankruptcy order has the effect of terminating the arrangement. And
consequently whether assets held by the supervisor are available to the official
receiver as trustee or liquidator (and, if they are, the extent to which they are subject
to prior charges).
Pre-bankruptcy individual voluntary
arrangements
51.17 Previous arrangement Where a bankruptcy order is made, the official receiver should obtain details of any
proposal previously made by a debtor under a formal or informal voluntary
arrangement, a deed of arrangement under the Deeds of Arrangement Act 1914
(repealed 1 October 2015) or an appointment under section 273(2) (repealed 6 April
2016). This information may well provide particulars of assets which have not been
disclosed in the bankruptcy proceedings and will generally assist the official receiver
in their investigations. It will also assist the official receiver in identifying those
creditors who are entitled to claim in the bankruptcy.
51.18 Effect of bankruptcy order on failed
IVA
Where an IVA has failed and the supervisor or an IVA creditor presents a bankruptcy
petition1, the official receiver will need to look carefully at the IVA proposal, and any
amendments, to determine what effect the bankruptcy order has on the IVA and,
particularly, how any funds in hand should be dealt with.
The decision in the case of Re N T Gallagher & Son Limited2 concerned a company
voluntary arrangement (CVA) but the judgment is clear that it can also be applied to
an IVA. In this case it was held that a supervisor of a CVA who has received
contributions from the subject of a CVA is in effect the trustee of those monies, which
are held in trust on behalf of the creditors bound by the CVA. It was also held that
CVA creditors could prove in a subsequent liquidation for so much of their debt as
remains after payment of what has been or will be recovered from the monies or
assets held in trust.
Where the IVA provides for what is to happen on the making of a bankruptcy order or
the failure of the IVA, those provisions should be followed. However, where there are
no such provisions contained in the IVA, any trust created by the IVA over the assets
will continue despite the making of the bankruptcy order.
When a bankruptcy order is made following a failed IVA, the official receiver should
request the following information from the supervisor of the IVA using form NPBB:
• a copy of the IVA proposal (as amended) agreed by the creditors
• a copy of the statement of affairs and details of the assets (both realised and
unrealised)
• details of any trusts the supervisor considers have been established by the IVA
• details of any distributions made
• details of any records held by the supervisor on behalf of the bankrupt
The official receiver should consider the wording of the agreed proposal to determine
whether any monies or assets held by the supervisor or bankrupt are held on trust
for the benefit of the IVA creditors. The official receiver should notify the supervisor
and insolvent of their conclusions as soon as it is practical to do so in the expectation
that the position will be agreed between them. Thereafter, the official receiver should
ensure that all assets not held in trust for the IVA creditors are dealt with in the
bankruptcy in the usual way.
In bankruptcy cases where an asset has been placed in trust under the IVA, it will
not form part of the bankruptcy estate and will remain vested in the bankrupt3. It will
be for the bankrupt to realise the asset and account to the supervisor for any
realisation.
In cases where the bankruptcy petition is presented by the (former) supervisor under
section 264(1) (c), any unpaid expenses of the IVA properly incurred as expenses of
the IVA shall be a first charge on the bankruptcy estate4 (even though the underlying
asset from which they will be paid was not included in the IVA).
Unlike the 1986 Rules (rule 6.46A); the 2016 Rules do not contain any
corresponding provision for the properly incurred unpaid expenses of the IVA
forming a first charge on the bankruptcy estate, where the debtor makes their own
application for bankruptcy when they are subject to an IVA.
1. Sections 264(1)(c) and276
2. NT Gallagher & Son Limited [2002] 3 ALL ER 474.
3. Section 283(3)(a)
4. Section 276(2)
51.19 Effect of bankruptcy order on
previous IVA Where the bankruptcy petition is presented by a creditor not bound by the IVA, e.g. a
creditor whose debt has arisen since the IVA was implemented, the IVA is not
automatically terminated and the assets comprising the IVA may be held in trust for
the IVA creditors1. In Re: NT Gallagher & Son Limited2 it was held that where a CVA
provides for monies or other assets to be paid, transferred to, or held for the benefit
of creditors, this will create a trust for those creditors. It was further held that where
the CVA does not make express provision as to what will happen in liquidation, the
trust will continue notwithstanding the liquidation or failure of the CVA and must take
effect according to its terms. Although the case relates to a CVA, the judgment is
clear that it can also be applied to an IVA.
1. Re Bradley-Hole (A bankrupt) [1995] BCC 418
2. NT Gallagher & Son Limited [2002] 3 ALL ER 474
51.20 Considerations for the official
receiver
The official receiver will need to look carefully at a previous IVA to determine
whether the bankruptcy order has the effect of terminating the arrangement and
consequently whether assets held by the supervisor are available to the trustee (and,
if they are, the extent to which they are subject to prior charges).
Post bankruptcy individual voluntary
arrangements
51.21 Arrangement following bankruptcy
order Where a bankrupt has not entered into an IVA prior to the bankruptcy and they have
assets or there is the obvious potential for an IVA to be proposed their attention
should be drawn to the voluntary arrangement provisions1. It should be made clear to
the bankrupt that the official receiver will continue to administer the bankruptcy in the
usual way until the court makes an interim order2 or an order under section 261
relating to the future conduct of the bankruptcy proceedings3.
1. Sections 252 to 263
2. Section 255
3. Section 261(4)
51.22 Application for interim order Where an undischarged bankrupt intends to make a proposal for an IVA, the official
receiver, the trustee or the bankrupt may apply for an interim order which will provide
a moratorium for the insolvent debtor1. The official receiver is only expected to make
such an application in exceptional circumstances (e.g. where the bankrupt is through
mental or physical incapacity unable to take the necessary steps and no person can
be found who can adequately deal with these matters on their behalf).
1. Section 253(1)&(3)
51.23 Interim order not required in every
case An interim order is not a requirement of an IVA and the debtor may apply for an IVA
without also making application for an interim order1.
1. Section 256A
51.24 Effect of application for an interim
order When an application for an interim order is made the court may stay any
proceedings against the bankrupt1 but the official receiver should continue to
administer the bankruptcy in the normal way unless the court orders otherwise. As a
stay may involve the whole of the bankruptcy proceedings, the official receiver must
ensure that s/he is aware of the manner in which the bankruptcy is to be conducted
while any interim order is in force. If the stay will cause any obvious problems in the
bankruptcy, the official receiver should refer the matters to the court and obtain
directions2.
During the period of the stay the bankrupt will continue to be subject to the
restrictions of bankruptcy and an application for an annulment can still be made.
1. Section 254(2)
2. Rule 8.11
51.25 Effect of interim order During the period for which the interim order is in force
• no bankruptcy petition relating to the debtor may be presented or proceeded
with,
• no landlord or other person to whom rent is payable may exercise any right of
forfeiture by peaceable re-entry in relation to premises let to the debtor, and
• no other proceedings and no execution or other legal process may be
commenced or continued and no distress may be levied against the debtor or
his property
without the permission of the court1.
1. Section 252(2)
51.26 Secured creditors A secured creditor may still take steps to enforce his security whilst an interim order
is in force provided that he does not need to commence or continue proceedings,
execution or other legal process, e.g. obtaining an order for possession, in order to
do so.
51.27 Undisclosed information
If the official receiver is aware of any undisclosed information that may affect the
views of creditors when considering the debtor's proposal this should be brought to
the court's attention either in person or by way of a report at the hearing of the
interim order1. If the interim order is made, or it is a case where no interim order is
sought, that information should also be drawn to the nominee's attention. Any further
undisclosed information that comes to the official receiver's attention should also be
brought to the attention of the nominee. The official receiver should also request that
the nominee bring to the attention of the creditors any matters not included in his
report which the official receiver considers could have a bearing on the creditors’
decision to approve the proposal.
1. Rule 8.11
51.28 False representation to obtain IVA If the debtor makes any fraudulent representation, or fraudulently does or omits
anything, for the purposes of obtaining approval of an IVA, this is a criminal offence1
and the official receiver should consider making a criminal referral.
1. Section 262A
51.29 Action on receipt of nominees report
In every case the nominee must serve the official receiver, and any trustee, with a
copy of the debtor's proposal (including any amendments), a copy of the nominee’s
report with any comments and a copy or summary of the statement of affairs1. For
cases with no interim order the official receiver should additionally be sent:-
• a statement that no application for an interim order under section 253 is to be
made
• a copy of the notice of the nominee’s consent to act
On receipt the official receiver should examine these documents and draw the
nominee's attention to any obvious discrepancies. The official receiver should ensure
that provision has been made for the payment of the costs, fees and expenses of the
bankruptcy and provide the nominee with an estimate of the total costs. The official
receiver will normally accept an undertaking for the payment of those costs2.
1. Rule 8.15 and Rule 8.19
2. Rule 8.25(2)(a)
51.30 Position of the official receiver If no insolvency practitioner trustee has been appointed the official receiver will
continue as trustee until the IVA is implemented and should continue to administer
the bankruptcy (subject to the terms of any interim order) including paying any
money received into the Insolvency Services Account in the usual way. The court
may exercise its powers to vary the normal bankruptcy procedures during the period
of an interim order, for example, a continuing business where it may be necessary to
use the assets of the business to enable it to continue as a going concern. The
official receiver should seek to ensure that the court order does not leave them in
any doubt as to how to deal with any property and by whom and also does not place
any onerous duties on them1.
1. Section 255(3)&(4)
51.31 Creditors’ decision Creditors will consider the debtor’s proposal via a decision procedure1. After the
decision has been made, the convener must give notice of the decision to the
creditors and the official receiver2 and, where an interim order is in place, the
convener must also report the decision to court3.
1. Section 257
2. Rule 8.24(5)
3. Section 259(1)(b) and Rule 8.24(3)
51.32 Challenge of the creditors' decision The debtor, a creditor, the official receiver or the trustee may challenge the decision
of the creditors within a period of 28 days from the date on which the report of the
creditors' decision was filed at court or, where filing at court is not required, the date
on which notice of the decision was given1. The grounds for a challenge are that the
arrangement unfairly prejudices the interests of a creditor or the debtor or that there
has been some material irregularity at, or in relation to, the creditors’ decision
procedure. The official receiver is only expected to make such an application in
exceptional circumstances.
1. Section 262
51.33 Rejection of proposal Where a voluntary arrangement proposed under section 256 is not approved by the
creditors' decision procedure, any interim order may be discharged by the court
following the receipt of the convener's report1. The interim order will continue to have
effect until it expires or the court orders its discharge. If the official receiver needs to
proceed with the bankruptcy before the interim order ceases to have effect they
should make an immediate application to the court for directions2 with a view to
obtaining the discharge of the interim order and any stay of proceedings.
1. Section 259(2)
2. Rule 13.3
51.34 Approval of proposal Where the creditors' decision approves the proposal it takes effect from the date of
the decision to approve it. It binds every person who was entitled to vote in the
decision procedure and every person who would have been so entitled if they had
had notice of the decision procedure. Any interim order in force will cease to have
effect at the end of a period of 28 days from when the report of the creditors' decision
was filed at court, except if the court directs otherwise in circumstances where there
is an application to challenge to the decision1.
1. Section 260
51.35 Handover to supervisor Once a proposal is approved the IVA should get under way as soon as practicable,
subject only to being halted by a challenge under section 262. The official receiver
must do all that is required to put the supervisor in possession of the assets included
in the IVA1, and should therefore hand over the property included in the IVA as soon
as practicable after the creditors' decision procedure. A receipt should be obtained
for any physical assets held by the official receiver. A handover to a supervisor does
not involve the record book, estate cash book or other documents usually handed
over to a trustee.
Any assets not included in the IVA should remain in the control of the official receiver
as trustee until the bankruptcy order is annulled or other directions for their disposal
are made by the court.
1. Rule 8.25(1)
51.36 Payment of official receiver's costs When the supervisor takes possession of the assets they are required to discharge
any balance due to the official receiver and trustee in respect of fees, costs,
expenses and remuneration. Where there are insufficient funds in the hands of the
official receiver to be retained to pay those costs they should obtain a written
undertaking from the supervisor, before handing over the assets, to pay those costs
out of the first realisation of assets. The official receiver’s costs take priority over
sums due to a trustee in the bankruptcy proceedings1.
1. Rule 8.25
51.37 Annulment of the bankruptcy order Where creditors have decided to approve an IVA the court shall, on the application of
the bankrupt or (where the bankrupt fails to make an application) the official receiver,
annul the bankruptcy. The court may give such directions about the conduct of the
bankruptcy and the administration of the bankruptcy estate as it thinks appropriate
for facilitating the implementation of the approved voluntary arrangement1.
1. Section 261
51.38 Application by bankrupt to annul
bankruptcy order
The bankrupt's application for the annulment of the bankruptcy order should be
supported by a witness statement stating that the IVA has been approved by
creditors, the date on which it was approved and that the 28 day period in which the
decision of the creditors may be challenged has expired1.
The bankrupt must give the official receiver, any insolvency practitioner trustee and
the supervisor of the IVA not less than five business days’ notice of the hearing of
the application2.
The official receiver, the trustee and the supervisor may attend the hearing or be
represented and draw to the attention of the court any relevant matters they think
appropriate3.
Where the court annuls the bankruptcy order it will send sealed copies of the order of
the annulment to the former bankrupt, the official receiver, any insolvency
practitioner trustee and the supervisor of the IVA4.
1. Rule 8.32(1)
2. Rule 8.32(3)
3. Rule 8.32(4)
4. Rule 8.34(2)
51.39 Application by official receiver to
annul bankruptcy order If the bankrupt fails to make an application for the annulment of the bankruptcy
order, the official receiver may apply. The official receiver may not make the
application before the expiry of 42 days beginning with the day on which the
nominee filed the report of the creditors’ decision with the court or, where that is not
required, the date on which the nominee issued notice of the result of the creditors’
decision1. The official receiver's application should be supported by a report stating
the grounds on which the application is made and contain a statement that the time
period above has expired and that they are not aware that any application or appeal
remains to be disposed of2.
Where the court annuls the bankruptcy order it will send notice of the annulment to
the official receiver, any insolvency practitioner trustee, the supervisor of the IVA and
the bankrupt3.
1. Rule 8.33(2)
2. Rule 8.33(1)
3. Rule 8.34(2)
51.40 Notice of annulment to be sent to
creditors Where the bankruptcy order is annulled the official receiver must notify all creditors
to whom notice of the bankruptcy has been issued, of the annulment. Expenses
incurred by the official receiver in giving notice of the annulment to the creditors are
a charge in their favour on the property of the former bankrupt1.
The former bankrupt is entitled to request, in writing, within 28 days of the making of
the annulment order, that the official receiver give notice of the annulment of the
bankruptcy in the gazette and in the same manner as the bankruptcy order was
originally advertised (if it was, in fact, originally advertised)2. The costs of such
publication are met from the administration fee.
1. Rule 8.35(1)&(2)
2. Rule 8.36(1)
51.41 Failure of IVA Where the IVA fails the supervisor may apply to the court for directions1 or may
present a bankruptcy petition2. Where the original bankruptcy order was annulled
and the petition dismissed a new petition can be presented by the supervisor or a
creditor3, or the debtor may make their own application to the adjudicator4.
1. Section 263(4)
2. Section 264(1(c) and Section 276
3. Section 264 and Section 276
4. Section 263H
51.42 Individual insolvency register (IIR) A database of IVAs is kept by the Insolvency Service (maintained by Estates
Accounts and Scanning) and the information is available on the Individual Insolvency
Register (IIR) which is open to the public free of charge through the Insolvency
Service website1. The convener of a creditors’ decision making procedure which
approves an IVA is required to provide details of the arrangement to the Secretary of
State for registration2. The Rules specify the information which must appear on the
IIR, subject to any order under the ‘persons at risk of violence’ provisions3. The
official receiver can view the register via the link on the intranet homepage.
All information concerning an IVA must be deleted from the register of IVAs 3
months after the Secretary of State has received a notice that the IVA has been
revoked, fully implemented or terminated4.
1. Rule 11.13 and 11.14
2. Rule 8.26
3. Rule 20.1, 20.2 and 20.3
4. Rule 11.15