Interim orders and individual voluntary arrangements (IVAs)

Published by a LexisNexis Restructuring & Insolvency expert
Practice notes

Interim orders and individual voluntary arrangements (IVAs)

Published by a LexisNexis Restructuring & Insolvency expert

Practice notes
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What is an interim order?

An interim order (IO) is a court order that prevents legal proceedings being commenced or continued against a debtor who wishes to put forward a proposal for an individual voluntary arrangement (IVA). This includes preventing a creditor from presenting a bankruptcy petition. It is no longer necessary to obtain an IO in order to make an IVA proposal.

The purpose of the IO is to give the debtor time to formulate the arrangement free from harassment and demands by the debtor’s creditors. It is akin (although not identical) to the statutory moratorium that arises in other forms of the insolvency process (eg administration). In particular, for so long as the IO is in force, it has the effect that:

  1. a bankruptcy petition may not be presented and, if one has been presented, it may not be proceeded with

  2. the following acts are forbidden unless the court gives leave:

    1. a landlord may not exercise a right of forfeiture by peaceable re-entry

    2. no proceedings, no execution and

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Jurisdiction(s):
United Kingdom
Key definition:
Voluntary arrangement definition
What does Voluntary arrangement mean?

A procedure for either a company or an individual to reach a legally binding agreement to pay all or part of their debts.

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