In the
United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and North ...
, a simplified IVA (SIVA) was a proposed new form of IVA (
individual voluntary arrangement), which would have been a formal alternative of clearing debt without being declared
bankrupt
Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor ...
.
The new regime was likely to have been two tiers:
*Tier 1 would have had an upper limit of £25–30,000, and
*Tier 2 an upper limit of £75,000.
Also, the approval of an SIVA was likely to have been based on a simple majority instead of the existing 75%.
The government decided not to proceed with the proposals for SIVA in November 2008.
Simplified IVA plans withdrawn
In December 2008 The plans announced to modify the
Insolvency Act 1986
The Insolvency Act 1986c 45 is an Act of the Parliament of the United Kingdom that provides the legal platform for all matters relating to personal and corporate insolvency in the UK.
History
The Insolvency Act 1986 followed the publication and ...
by introducing SIVAs (Simplified IVA) have been withdrawn from the regulatory marketplace. The association said that the "successful operation of the IVA (
Individual Voluntary Arrangement) Protocol has resulted in many of the desired improvements in the IVA marketplace being implemented without the need for further
insolvency
In accounting, insolvency is the state of being unable to pay the debts, by a person or company ( debtor), at maturity; those in a state of insolvency are said to be ''insolvent''. There are two forms: cash-flow insolvency and balance-sheet i ...
legislation".
See also
*
Individual voluntary arrangement
*
Company voluntary arrangement
Under UK insolvency law an insolvent company can enter into a company voluntary arrangement (CVA). The CVA is a form of composition, similar to the personal IVA ( individual voluntary arrangement), where an insolvency procedure allows a compa ...
External links
UK Government Simplified IVA ProposalsSimplified Advice With IVAs
Insolvency law of the United Kingdom
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