Framework of a proposal for an individual voluntary arrangement
Framework of a proposal for an individual voluntary arrangement

The following Restructuring & Insolvency guidance note provides comprehensive and up to date legal information covering:

  • Framework of a proposal for an individual voluntary arrangement
  • Introduction
  • Personal history
  • Proposal
  • Contributions
  • Assets
  • Assets
  • Property
  • Other assets
  • Third party funds
  • more

Produced in partnership with Paul Allen of FRP Advisory LLP

Introduction

I [insert debtor's name] wish to give my creditors the opportunity of considering an Individual Voluntary Arrangement (the Arrangement). Based upon the information provided in my estimated statement of affairs attached, it is clear that I am insolvent; I am unable to pay my debts as and when they fall due and my liabilities exceed my assets.

There are two alternatives available to me, either I petition for my own bankruptcy or I seek a voluntary Arrangement with my creditors.

I first discussed my affairs with my Nominee, [insert nominee's name] on [insert date of meeting] who advised me to seek independent insolvency advice. My Nominee has provided me with advice on all available debt resolution processes, having considered this advice I believe a voluntary Arrangement would be beneficial to both the creditors and me.

I set out below the reasons I believe an Arrangement would be beneficial:

  1. 1

    Total funds available in the Arrangement are greater than would be available in the event of my bankruptcy.

  2. 2

    The costs of administering the Arrangement are lower than would be incurred in the event of my bankruptcy.

  3. 3

    As a result of [(1)] and [(2)] above the outcome for the creditors will be better than would be achieved in a bankruptcy.

  4. 4

    I will avoid the personal