PVA/IVAs & Leasing Company

[hitch1978]

Hi All

I have recently entered into a PVA along with and IVA to ensure that creditors could not come outside of the PVA to claim their debts.

We entered into the PVA on the 28th March 07 with the IVAs following 2 weeks after.

Out of the blue I have been issued with a Bankruptcy petition from a leasing company from whom we are leasing a piece of business equipment, whilst we were two months in arrears prior to the PVA, we are now up to date with the arrangement.

As far as I am aware, because the agreement was formed prior to the PVA and the money was released before the date (Nov 06) if the leasing company wishes to pursue this further they would need to make a claim in the PVA. Please could somebody clarify this situation with me?

[catullus]

The PVA is to an extent irrelevent because that just protects the business, its the IVA that is important because it protects you personally.

All the creditors of your PVA should also be creditors within your IVA.

The lessor must have issued bankruptcy proceedings because it doesn't think that it is bound in to the IVA. All creditors who receive notice of the IVA are bound regardless as to how they voted and there are provisions to enable creditors who (innocently) did not receive notice of the IVA to be included and bound in, even if they don't want to be.

You should check with your supervisor to ensure that the lessor was included in the IVA and, if so, he may be able to stop proceedings by making direct contact with the petitioners solicitors. If they are not in the IVA you and the IP will need to establish why they didn't receive notice, but provided there isn't something unusual in the background that you don't know about, there shouldn't be a problem.

How the creditor claims depends on how the IP set up the IVA and PVA but you're probably right that they should claim in the PVA.

[hitch1978]

Thanks for the clarification, the leasing company were not informed of the PVA/IVA as it was/is planned to keep the asset - as you rightly say, all creditors have claim to the PVA with a shortfall claim in the IVA.

[Adam Davies]

Hi
For other forum members a PVA is a Partnership Voluntary Arrangement.
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

[catullus]

The leasing company really should have been informed regardless of the intention to keep the asset.

In theory INTENTIONAL failure to give a creditor notice of an IVA/PVA could undermine the rules I mentioned about late admittance of claims but since the lease is up to date, I can't see what the issue is with the creditor unless there is more to this.

I think that you need to have a chat with your supervisor as to how he sees this.