The following Restructuring & Insolvency guidance note Produced in partnership with David Nicholls of Landmark Chambers provides comprehensive and up to date legal information covering:
An interim order (IO) is a court order that prevents legal proceedings being commenced or continued against a debtor who wishes to put forward a proposal for an individual voluntary arrangement (IVA). This includes preventing a creditor from presenting a bankruptcy petition. It is no longer necessary to obtain an IO in order to make an IVA proposal.
The purpose of the IO is to give the debtor time to formulate the arrangement free from harassment and demands by the debtor’s creditors. It is akin (although not identical) to the statutory moratorium that arises in other forms of the insolvency process (eg administration). In particular, for as long as the IO is in force, it has the effect that:
a bankruptcy petition may not be presented and, if one has been presented, it may not be proceeded with
the following acts are forbidden unless the court gives leave:
a landlord may not exercise a right of forfeiture by peaceable re-entry
no proceedings, no execution and no legal process may be commenced or continued, and
no distress may be levied against the debtor or the debtor’s property
There is a less extensive moratorium during the period between an application for an IO being made and an IO being granted. During that period, a landlord may not exercise
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