# The Legislative Reform (Insolvency) (Individual Voluntary Arrangements) Order 2008, Article 4: Fast-track voluntary arrangement – extension of availability


(1) For section 263A (availability), substitute the following—
“Availability
263A (1) Section 263B applies where—
(a) an individual debtor intends to make a proposal to his creditors for a voluntary arrangement,
(b) no interim order is applied for under section 253, and
(c) the circumstances in subsection (2) or (3) apply.
(2) The circumstances in this subsection are—
(a) the debtor is an undischarged bankrupt, and
(b) the official receiver is specified in the proposal as the nominee in relation to the voluntary arrangement.
(3) The circumstances in this subsection are—
(a) the debtor is an undischarged bankrupt or is able to petition for his own bankruptcy,
(b) a nominee other than the official receiver is specified in the proposal as the nominee in relation to the voluntary arrangement,
(c) the aggregate amount of the debtor’s debts so far as unsecured (including any unsecured shortfall due to secured creditors) does not exceed the maximum amount,
(d) neither the existence nor the amount of any one of the debtor’s unsecured debts is disputed by him, and
(e) if at any time during the period of six years ending with the day before the day upon which the debtor submits his proposal to the nominee a voluntary arrangement having effect by virtue of section 263D(2) has been in force for the debtor, that arrangement was fully implemented before the expiry of that period in respect of all the persons bound by it.
(4) The “maximum amount” for the purposes of this section is £75,000.
(5) The Secretary of State may by order made by statutory instrument amend subsection (4) so as to substitute a different sum for the sum for the time being specified there.
(6) An instrument containing an order under subsection (5) may not be made unless a draft of the instrument has been laid before and approved by resolution of each House of Parliament.”.
(2) In section 263B (decision)—
(a) in subsections (1), (2), (4) and (5), for all references to “official receiver”, substitute “nominee”;
(b) for subsection (3) substitute—
“(3) For the purposes of subsection (2), a person is a “creditor” only if—
(a) the nominee is aware of his claim and his address, and
(b) where the debtor is an undischarged bankrupt, the person is a creditor of the debtor in respect of a bankruptcy debt.”;
(c) after subsection (5) insert—
“(6) In respect of a nominee other than the official receiver, the court may—
(a) on an application made by the debtor in a case where the nominee has failed to make the arrangements required by this section or has died, or
(b) on an application made by the debtor or the nominee where it is impracticable or inappropriate for the nominee to continue to act as such,
direct that the nominee shall be replaced as such by another person qualified to act as an insolvency practitioner, or authorised to act as nominee, in relation to the voluntary arrangement.”.
(3) In section 263C (result), for “the official receiver shall report to the court” substitute “the nominee shall notify the Secretary of State”.
(4) In section 263D (approval of voluntary arrangement)—
(a) in subsection (1), for “the official receiver reports to the court” substitute “the nominee notifies the Secretary of State”;
(b) for subsection (3) substitute—
“(3) Where the debtor is an undischarged bankrupt, the court shall annul the bankruptcy order in respect of the debtor on an application made—
(a) where the official receiver is the nominee, by the official receiver;
(b) where the official receiver is not the nominee—
(i) by the bankrupt, or
(ii) where the bankrupt has not made an application within the period prescribed for the purposes of section 261(2)(b), by the official receiver.”.
(5) In section 263E (implementation), after the word “meeting” insert “(for which purpose, the reference in subsection (2) of section 263 to section 256(3), 256A(4) or 258(3), shall be read as a reference to section 263B(6))”.
(6) In section 263F (revocation)—
(a) in subsection (2), for paragraphs (c) and (d) substitute—
“(c) where the official receiver is not the nominee in respect of the arrangements made under section 263B(2), the nominee or his replacement under section 263B(6), or
(d) where the official receiver is the nominee in respect of the arrangements made under section 263B(2)—
(i) the trustee of the bankrupt’s estate, or
(ii) the official receiver.”;
(b) for subsection (3) substitute—
“(3) An application under subsection (2) may not be made after the end of the period of 28 days beginning with the date on which the nominee notifies the Secretary of State under section 263C.”.

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Source: https://www.legislation.gov.uk/ukdsi/2008/9780110845845/article/4 (the official version)
Page: https://openlegislation.uk/draft-legislative-reform-insolvency-individual-voluntary-arrangements-order-2008/article-4
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.