Commentary

63 The voluntary arrangement and third parties

BANKRUPTCY AND INSOLVENCY (INDIVIDUAL INSOLVENCY) vol 3(2)
| Commentary

63 The voluntary arrangement and third parties

| Commentary

63 The voluntary arrangement and third parties

A party who is neither the debtor nor a creditor is not bound by the terms of an IVA per se. Thus, a third party who offers to advance monies that are to be made available to creditors under the arrangement is not liable to make those monies available after the approval of the IVA, unless there is an agreement between the third party and the nominee, on behalf of the creditors, made under seal or supported by proper consideration.

The fact that an IVA releases the debtor who proposes it from his

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