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 Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...
, a simplified IVA (SIVA) was a proposed new form of IVA (
individual voluntary arrangement
An individual voluntary arrangement (IVA) is a formal alternative in England and Wales for individuals wishing to avoid bankruptcy in England and Wales, bankruptcy. In Scotland, the equivalent statutory debt solution is known as a protected tr ...
), 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 de ...
.
Tiers
The simplified IVA (SIVA) was likely to have been two tiers:
* Tier 1 would have an upper limit of £25–30,000, and
* Tier 2 would have an upper limit of £75,000.
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.
Withdrawal
In December 2008 The plans announced to modify the
Insolvency Act 1986
The Insolvency Act 1986 (c. 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 ...
by introducing SIVAs (Simplified IVA) have been withdrawn from the regulatory marketplace. The association said that the "successful operation of the IVA 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
An individual voluntary arrangement (IVA) is a formal alternative in England and Wales for individuals wishing to avoid bankruptcy in England and Wales, bankruptcy. In Scotland, the equivalent statutory debt solution is known as a protected tr ...
*
Company voluntary arrangement
References
External links
Simplified IVA ProposalsSimplified Advice With IVAs
Insolvency law of the United Kingdom
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