Simplified IVAs Will Not Be Introduced

Earlier this year the Insolvency Service presented a draft of The Legislative Reform (Insolvency) (Individual Voluntary Arrangements) Order 2008 (the 'Order') to Parliament. The Order was set to amend the Insolvency Act 1986 (the '1986 Act') in relation to IVAs and to introduce Simplified IVAs.

The intention of the Order was to reduce burdens on those who administer IVAs and in turn reduce costs, thereby benefiting the debtor and his creditors. Three stated objectives were:

1. To extend access to the fast-track IVA provisions contained in Part eight of the 1986 Act to debtors who are not undischarged bankrupts and to permit insolvency practitioners and authorised persons to administer such arrangements;