Challenging an individual voluntary arrangement (IVA)
Produced in partnership with Tom Shepherd of 4 New Square and Paul Allen of FRP Advisory LLP

The following Restructuring & Insolvency practice note produced in partnership with Tom Shepherd of 4 New Square and Paul Allen of FRP Advisory LLP provides comprehensive and up to date legal information covering:

  • Challenging an individual voluntary arrangement (IVA)
  • Coronavirus (COVID-19)
  • Grounds to challenge an individual voluntary arrangement
  • Entitlement to challenge an IVA
  • Time limit to challenge an IVA
  • Ground (a): unfair prejudice
  • Ground (b): material irregularity
  • Powers of the court on a challenge to an IVA

Challenging an individual voluntary arrangement (IVA)

Coronavirus (COVID-19)

This content contains guidance on subjects impacted by the Coronavirus Act 2020 and related changes to court procedures and processes as a result of the Coronavirus (COVID-19) pandemic. For further information, see Practice Note: Coronavirus (COVID-19)—Changes to the court process in insolvency proceedings. For related news, guidance and other resources to assist practitioners working on restructuring and insolvency matters, see: Coronavirus (COVID-19)—Restructuring & Insolvency—overview.

Grounds to challenge an individual voluntary arrangement

An application can be made to challenge the approval of an individual voluntary arrangement (IVA) on one or both of two grounds:

  1. that the creditors’ decision approving the IVA unfairly prejudices the interests of a creditor of the debtor

  2. that there has been some material irregularity at or in relation to the creditors' decision procedure

Entitlement to challenge an IVA

A creditor is entitled to challenge an IVA if they:

  1. were entitled to vote in the creditors' decision procedure, or

  2. would have been entitled had they had notice of the creditors' decision procedure

A challenge to an IVA may only be pursued in accordance with the statutory scheme.

Time limit to challenge an IVA

An application to challenge an IVA may not be made:

  1. after the end of the period of 28 days beginning with:

    1. where an interim order (IO) was made under

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