Fast Track Voluntary Arrangement

[BlueShoes]

Hello.
I have been researching a FTVA and wondered whether a forum expert could clarify my understanding of it.
Am I right in thinking that if an IVA proposal fails, and you file for bankruptcy, you can request that the OR acts for you in a FTVA, in which you make a proposal to pay your creditors back a fixed amount for a set number of years. This usually gives them a better return than in bankruptcy, but less than in an IVA? Your bankruptcy is then anulled.
The OR can refuse to act for you apparently, and you still need 75% vote from creditors.
I am guessing that it isn't as "do-able" as it sounds, or otherwise we would have heard more about it?
Thanks
Blue

[Adam Davies]

Hi
A quote from Melanie Giles
"Fast track IVA's can only be presented after you have been made bankrupt, where the Official Receiver is acting. They are quite rare, as most people who go bankrupt have either tried or considered the conventional route, and having gone through the bankruptcy process are happy to remain following that."
Hope this helps
regards


Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[BlueShoes]

Is the FTVA only an option if you haven't previously proposed an IVA?
Thanks

[MelanieGiles]

I could probably count the amount of FTVA's which have been put forward since the Enterprise Act created them in 2004 on one hand. The OR's offices simply do not like doing them, and to be frank what would be the point if you had already had one turned down.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk