Individual Voluntary Arrangement
This is an arrangement where the debtor makes a proposal to creditors to offset his debt. The proposal is deliberated on in creditors’ meetings, and amendments done where they are agreeable to both the creditors and the debtor. The viability of the proposal is determined by voting. Where it is approved by majority of the creditors, it is presented to court for adoption and is binding to all parties.
Where an application for an Individual Voluntary Arrangement is presented to the Official Receiver the following actions shall be undertaken:
- State Counsel will go through the application.
- If the application is properly drawn, approve the application and indicating the amount to be paid by the petitioner
- Direct the petitioner to make payment of statutory fees at the BRS accounts office.
- State Counsel generate a Certificate of Compliance
- Open a file.
- Where the Court appoints the Official Receiver as the supervisor or interim supervisor.
- State Counsel shall convene a creditors’ meeting.
- Investigate the affairs of the debtor.
- Conduct the meeting to arrive at terms agreeable to both the creditor’s and the debtor
- Conduct a vote for the approval or rejection of the proposal
- The State Counsel shall report to the court on the outcome of the meetings.
- Where the proposal is approved present it to Court for adoption.
- Where the Official Receiver is Confirmed as the supervisor, oversee the implementation of the proposal.