IVAs & Interim Orders

by: Hollie Wilcox
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Many consumers in the United Kingdom have sought individual voluntary arrangements rather than going so far as to declare bankruptcy. The process of creating an individual voluntary arrangement may take some time. However legislation has been enacted to help speed up the process. During this time period, creditors may lose patience and wish to force the debtor to enter into bankruptcy. In order to prevent this from happening debtors may petition the court for an interim order. The purpose of these interim orders is to allow the debtor a chance to propose an individual voluntary arrangement without the worry of a force bankruptcy.

When petitioning the court for an interim order certain criteria must be met in order for the court to grant approval. First and foremost the debtor has to show their intent to propose an individual voluntary arrangement to their creditors. The debtor must also not be involved in any current bankruptcy proceedings. In the preceding 12 months prior to the interim order petition, no other applications should have been filed. The professional seeking the interim order must be an insolvency practitioner and possess qualifying credentials.

Interim orders are typically done fairly quickly. After notifying the court a hearing might occur as soon as two days. The location of the hearing may be in the judge's chambers or before a registrar. In some situations the court will consider the request for an interim order at the time it is made. This is actually beneficial for the court as it reduces the number of hearings required in this matter. In the long run the costs are significantly reduced. Revisions to legislation have helped spur this movement for expedited hearings. However not all courts have rallied to enact these changes.

Once an interim order is approved it typically lasts for two weeks. If at the end of two weeks the debtor finds that they need more time in which to draw up their individual voluntary arrangement they may petition the court for an extension. Often times this extension is made for the date of the proposal of the IVA to creditors.

Article Source: http://www.ArticleStreet.com/profile/hollie-wilcox-14216.html

About the Author

For more information on IVA or for some debt advice from the experts, visit www.debt-free.org.uk

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