Oliver Elliot are licensed Insolvency Practitioners in the UK specialising in bankruptcy and Individual Voluntary Arrangements (IVA). We offer a wide range of services and can accommodate you no matter what industry you are in and what insolvency services you require.
How Oliver Elliot can help:
- Our expertise at your fingertips.
- Explain to you the process.
- Assemble information for your creditors.
- A caring and responsive approach.
- Set out for you all your options.
- Make effective recommendations.
Contact us for a no obligation consultation
We have more than twenty years insolvency experience, resolving challenging financial circumstances for individuals. Contact Us for a Free Initial Consultation.
020 3925 3613 / email@example.com
Personal solvency solutions for individuals
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Individual Voluntary Arrangement (IVA)
Need advice about debt? Our Licensed Insolvency Practitioner offers a wide range of services to help you consider your options to avoid bankruptcy.
Frequently asked questions
Individual Voluntary Arrangement otherwise known as an IVA is a procedure arising from Part VIII of the Insolvency Act 1986 and is in essence a contract between an individual and his or her creditors which allows the individual to delay or compromise the payment of debts. An IVA is flexible and can be adapted.
An Individual Voluntary Arrangement is the major alternative to an individual being subject to bankruptcy. In essence, an IVA will substitute the terms of the person’s existing contracts with his or her creditors with the terms set out in the IVA proposal.
A creditor owed at least £5,000 may issue a bankruptcy petition to the Court. This is known as a Creditor’s Petition.
If the debt remains unpaid the Court may grant a bankruptcy order against the person. Once such an order is made, a Trustee will be appointed who will realise the bankrupt individual’s property and distribute the proceeds to creditors. A person is discharged from their bankruptcy normally after a 12 month period and their liabilities after effectively extinguished.
However, an individual who has been declared bankrupt is required to cooperate with the Trustee by virtue of Section 333 of the Insolvency Act 1986 and if that is not the case then the automatic discharge from bankruptcy restrictions (such as obtaining above certain levels of credit without notice of bankruptcy) can be suspended.
Company Voluntary Arrangement (CVA) is an arrangment or in essence a contract between a company and its creditors which allows the company to delay or compromise the payment of debts.
The CVA procedure is set out in Part I of the Insolvency Act 1986.
A CVA is flexible and can be adapted. In essence, an CVA will substitute the terms of the person’s existing contracts with his or her creditors with the terms set out in the CVA proposal. For example, the proposal might require the company to pay a fixed monthly sum into the arrangement for a period of say five years so that creditors receive a dividend.
A Company Voluntary Arrangement is a proposal to creditors and the term and amount of payments can vary pending on the circumstances and can potentially be modified by creditors. We can assist you and carry out a review of your company’s affairs to ascertain whether an CVA is appropriate for you. We can then help in the drafting of the proposal.
Administration is a procedure that provides an insolvent company with a period of protection during which time creditors may take no action against the company without permission of the Court. This allows the administrator and the directors to formulate a strategy for the way forward. The Enterprise Act 2002 introduced statutory purposes for an administration. This has now been produced in Schedule B1 of the Insolvency Act 1986.
Liquidation Of A Company is in essence the death of a company. A liquidator is appointed to act instead of the Directors to wind up the company’s affairs. Can you liquidate your own company? The answer is no because a Liquidation has to be undertaken by a Liquidator who is a Licensed Insolvency Practitioner or government official known as the Official Receiver.
There are two types of insolvent liquidation: Compulsory Liquidation or Creditors Voluntary Liquidation. Contact us for any advice as to how we may assist you with a liquidation matter. A solvent liquidation is known as a Members Voluntary Liquidation. So if you are going to liquidate your company you will need to consider if the company is insolvent or solvent.
If you are finding that your company is finding it difficult to keep up with paying debts on time you may find some useful information here. Please feel free to contact us at your earliest convenience for free confidential advice on your situation.
A Members Voluntary Liquidation (“MVL”) is a solvent liquidation and one of the ways to liquidate your company when the creditors can anticipate and ought to obtain 100 pence in the £. An MVL can be undertaken entirely online.
A MVL is a procedure that is not strictly an insolvency procedure because the company is solvent and the creditors will be paid in full. It is a procedure that enables a business’ trade to be concluded and for a distribution to be provide to the shareholders or otherwise known as the members.
It is commonly undertaken for reasons of tax efficiency to obtain entrepreneurs relief for capital gains tax purposes.
The process looks to obtain tax clearance from H M Revenue and Customs so that the Directors and Shareholders can be confident that there will be no claims remaining against the company.
The procedure will involve a resolution to wind up the company. Statutory Declaration of Solvency to demonstrate ability to pay debts in full. Appointment of a Liquidator to wind up the company.
A Creditors Voluntary Liquidation of a company (“CVL”) is one of the ways in which you as a director can liquidate your company. You will typically approach an Insolvency Practitioner to wind up the company’s affairs without any involvement by the court.
A Creditors Voluntary Liquidation is initiated by a shareholders’ resolution. It involves the end of the insolvent company and the distribution of the company’s assets to the creditors. This procedure enables directors to avoid unsecured limited company debts that are not personally guaranteed. That is subject to the provisions associated with Wrongful Trading which is why it is so important to get advice at the earliest opportunity.
A crucial defence to any claim for Wrongful Trading is that the Directors took every step with a view to minimising the potential loss to creditors. Directors need to be able to show what steps they took, how they took them and how those steps were of benefit to creditors. Taking professional advice and documenting what was done and the reason for it, will go a long way to being able later justify the position when it is being viewed with hindsight.
A creditors voluntary liquidation is by virtue of its name ‘voluntary’. There is no compulsion on a Director to deploy this procedure. However, many Directors consider it to be the right and responsible approach to be proactive for the overall benefit of the company and its creditors by ensuring that appropriate professional advice is taken. It will enable the processes of concluding the company’s activities are swiftly undertaken instead of waiting for creditors to take their own action themselves.
As a Director you may see voluntary liquidation as an appropriate exit from a stressful situation for you to liquidate your company; whilst addressing all of the creditors, appropriately. If the limited company has liabilities that it cannot afford to pay and you would like to move on without the stress of the company’s debts hanging over your head, this type of procedure may be an appropriate option. Although it should be seen as a last resort, liquidating a company via this route can be considered a reasonable decision. Apply for a CVL online here.
A compulsory liquidation of a company is when a court has issued a winding up order after a hearing of a winding up petition. Following which the Official Receiver is initially typically appointed as the Liquidator.
The Official Receiver is a government official who is employed by a government executive agency known as the Insolvency Service. Upon the making of a winding up order creditors can either leave matters with the OR to be the liquidator or alternatively attempt to appoint an Insolvency Practitioner (“IP”) to be the liquidator instead of the Official Receiver.
A Director whose company has gone into compuslory liquidation will have to attend on the Official Receiver and complete a very detailed questionnaire and narrative statement. This will assist in the understanding as to the reasons for the company’s demise.
There are two ways in which creditors can appoint an Insolvency Practitioner to be the Liquidator. If not less than 50% of creditors by value make a request of the OR then they can appoint an IP. Alternatively, creditors if they represent not less than 25% of creditors by value they can requisition a Decision Procedure to vote on the appointment of an IP to be the liquidator instead of the OR.
As Director and or Shareholder you can still use this approach to liquidate your company also but you will have to deal with the investigation of the Company’s affairs through the Official Receiver.