Simplified Individual Voluntary Arrangement
Encyclopedia
In the United Kingdom
, a Simplified IVA (SIVA) was a proposed new form of IVA (Individual Voluntary Arrangement
), which would have been a formal alternative of clearing debt without being declared bankrupt.
The new regime was likely to have been two tiers:
Also, the approval of an SIVA was likely to have been based on a simple majority instead of the exiting 75%.
The government
decided not to proceed with the proposals for SIVA in November 2008.
by introducing SIVAs (Simplified IVA) have been withdrawn from the regulatory marketplace. The association said that the "successful operation of the IVA (Individual Voluntary Arrangement
) Protocol has resulted in many of the desired improvements in the IVA marketplace being implemented without the need for further insolvency
legislation".
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, a Simplified IVA (SIVA) was a proposed new form of IVA (Individual Voluntary Arrangement
Individual Voluntary Arrangement
In the UK, an Individual Voluntary Arrangement is a formal alternative for individuals wishing to avoid bankruptcy.The IVA was established by and is governed by Part VIII of the Insolvency Act 1986 and constitutes a formal repayment proposal presented to a debtor's creditors via an Insolvency...
), which would have been a formal alternative of clearing debt without being declared bankrupt.
The new regime was likely to have been two tiers:
- Tier 1 would have had an upper limit of £25-30,000, and
- Tier 2 an upper limit of £75,000.
Also, the approval of an SIVA was likely to have been based on a simple majority instead of the exiting 75%.
The government
Government
Government refers to the legislators, administrators, and arbitrators in the administrative bureaucracy who control a state at a given time, and to the system of government by which they are organized...
decided not to proceed with the proposals for SIVA in November 2008.
Simplified IVA plans withdrawn
In December 2008 The plans announced to modify the Insolvency Act 1986Insolvency Act 1986
The Insolvency Act 1986 is an Act of the Parliament of the United Kingdom that provides the legal platform for all matters relating to personal and corporate insolvency in the UK.-History:...
by introducing SIVAs (Simplified IVA) have been withdrawn from the regulatory marketplace. The association said that the "successful operation of the IVA (Individual Voluntary Arrangement
Individual Voluntary Arrangement
In the UK, an Individual Voluntary Arrangement is a formal alternative for individuals wishing to avoid bankruptcy.The IVA was established by and is governed by Part VIII of the Insolvency Act 1986 and constitutes a formal repayment proposal presented to a debtor's creditors via an Insolvency...
) Protocol has resulted in many of the desired improvements in the IVA marketplace being implemented without the need for further insolvency
Insolvency
Insolvency means the inability to pay one's debts as they fall due. Usually used to refer to a business, insolvency refers to the inability of a company to pay off its debts.Business insolvency is defined in two different ways:...
legislation".