Challenging IVAs - Lessons Learned from Re Rossi

Introduction

In the current environment of a recession and increasing inflation, there is likely to be an increased use of Individual Voluntary Arrangements (‘IVAs’) by individuals seeking to avoid bankruptcy.

This brings with it a corresponding desire by some creditors who might otherwise desire a bankruptcy with attendant investigations to challenge or dispute the acceptance of IVAs.

This webinar will examine what is an IVA, how it comes into being, and how an IVA can be challenged.

It will also consider the recent case of Re Rossi which concerned an attempt to challenge an IVA meeting and the conduct of the insolvency practitioner as the nominated supervisor.

What You Will Learn

This webinar will cover the following:

• What is an IVA?
• The nature of IVAs
• The difference between an IVA and bankruptcy
• Why a debtor might prefer an IVA, and the views of creditors on IVAs
• How does an IVA come into existence?
• The proposal and the engagement of a nominee supervisor (insolvency practitioner)
• Notices to creditors including the proposal
• The meeting of creditors
• How to challenge an IVA:
• S.262 Insolvency Act 1986 and its two sub-routes of challenge
• Insolvency Rules 2016 r15.35
• Time limits for challenges
• Challenges for unfair prejudice or material irregularity:
• What are the differences between prejudice and irregularity?
• What constitutes unfair prejudice?
• What constitutes a material irregularity?
• What might the court order?
• Challenges against the admission or rejection of a creditor’s debt for voting purposes:
• What is the relationship between IR 2016 r15.35 and s.262 IA 1986?
• What is specifically challengeable?
• What is the threshold for achieving a valid challenge?
• What might the court order?
• Re Rossi:
• The facts of the case and the issues in dispute
• What was the factual finding?
• The judge’s findings on material irregularity and the non-admission of the debt
• What is the importance for future practice?

This webinar was recorded on 5th December 2022