Individual Voluntary Arrangements Service
Why should you subscribe to Individual Voluntary Arrangements
A clear, authoritative guide, available as a print or online subscription, that has become an essential reference tool for all debt advisers, insolvency practitioners, lawyers advising insolvency professionals and creditors or debtors during the preparation of an IVA or after its approval.
Written by a team of experts in the field, the looseleaf format with its regular updates ensures you are kept fully informed of the relevant case-law and changes to practice and procedure. Recent updates have focused on VAT reclaims after the decision in Paymex, issues arising out of PPI claims and the involvement of secured creditors. All the latest developments are examined in detail and invaluable, practical guidance is provided to navigate you through this complex area of law.
Table of contents
Issue 50, June 2019Issue 50 considers the following decisions:
- Re George (in bankruptcy); Gwinnutt (as trustee in bankruptcy of George) v (1) George (2) Ryan  EWCA Civ 656. The first instance decision held that the right to recover non-contractual fees owed to a barrister as at the date of his bankruptcy did not vest in his trustee in bankruptcy. The Court of Appeal overturned the decision, holding that non-contractual fees were ‘property’ for the purposes of s 283(1) of the Insolvency Act 1986 and automatically vested in the trustee in bankruptcy. The decisions are noted at A5[18A].
- Gertner v (1) CFL Finance Ltd (2) Rubin  EWCA Civ 1781;  BPIR 1605, on issues as to (1) the calculation of a debt for voting purposes where there has been a settlement of the creditor’s claim in circumstances where the creditor’s full rights are reserved pending full performance of the compromise by the debtor and (2) a material irregularity brought about by a side deal, which has the effect of favouring one particular creditor over the general body of creditors. The decision is referred to in detail at A13 and noted at A2 and A11.
- Bresco Electrical Services Ltd (in Liquidation) v Michael J Lonsdale (Electrical) Ltd, Cannon Corporate Ltd v Primus Build Ltd  EWCA Civ 27 where, in conjoined appeals, the Court of Appeal gave guidance on the interplay between the construction adjudication process and the insolvency regime when insolvent companies made claims. The Bresco case covered set-off. The Cannon case dealt with enforcement of an adjudication award by a company subject to a CVA. The decision is referred to at A5, A5 and A12.
- Arrangement assets commonly exclude those assets that would be exempt from a bankrupt’s estate, in particular tools of the trade and other equipment that the debtor might need to use in the course of his employment or vacation, as provided by s 283(2) of the Act. These bankruptcy provisions, which give an indicator as to what sort of assets might properly be excluded as arrangement assets, were considered in Birdi v Price  EWHC 2943 (Ch),  BPIR 305, which is noted at A4 and A5.