A fast-track voluntary arrangement (FTVA), in the United Kingdom, is a binding agreement with a debtors creditors to pay all or part of the money owed to them. A debtor can only enter into it after they have been made
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 ...
. In an FTVA an
official receiver acts as
nominee
A candidate, or nominee, is a prospective recipient of an award or honor, or a person seeking or being considered for some kind of position. For example, one can be a candidate for membership in a group or election to an office, in which case a ...
;
that is, he (or she) helps to prepare a proposal that is put to creditors and, if they accept the proposal, acts as supervisor, looking after the arrangement and making payments to creditors in accordance with the proposal.
FTVAs were introduced in 2004 by a 2003 amendment to 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 ...
.
Official receiver's fees
The official receiver's fee to act as nominee is currently £300, and as supervisor he also charges 15% of all sums realised. In addition, a registration fee of £35 for the FTVA is payable in order that the FTVA is recorded on the public register of all 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 ...
s (IVAs). The FTVA is cheaper than an ordinary IVA as there are set fees and costs.
References
External links
Insolvency Practitioners Association website
Bankruptcy in the United Kingdom
Law of the United Kingdom
Insolvency law of the United Kingdom
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