Challenging the Individual Voluntary Arrangement IVA

The client, or any creditor, can appeal to the court against the IVA within 28 days of the report of the creditors’ meeting being made to the court (including those who did not receive notice of the meeting, who have 28 days from when they found out about it), but only on the grounds that:

• There were irregularities in the way the meeting was held — eg, the proposal contained misleading or inaccurate information; or 
• The arrangement unfairly prejudiced the rights of a creditor — eg, where the client and her/his partner are jointly and severally liable for a number of unsecured debts and the majority of creditors accept the client’s proposal that no creditor should be able to pursue her/his partner in respect of those debts, a creditor who might otherwise have been able to pursue the partner as co-client
  may object to the IVA on that basis.

If the court considers that the challenge is justified, it may: 

• Revoke (or suspend) the IVA; or 
• Direct that a fresh creditors' meeting be held to either consider a new agreement or re-consider the existing agreement (and renew the interim order).