IVA Protocol 2014 Final

7/25/2019 IVA Protocol 2014 Final

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The Straightforward

Consumer IVA Protocol

2014 version

Effective from January 2014


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IVA PROTOCOL

Straigtfor!ar" con#umer in"ivi"ua$ vo$untary arrangement ereinafter referre" to a# aProtoco$ Com%$iant In"ivi"ua$ Vo$untary Arrangement &PCIVA'

Purpose of the protocol

1(1 Te %ur%o#e of te %rotoco$ i# to faci$itate te efficient an"$ing of #traigtfor!ar"con#umer in"ivi"ua$ vo$untary arrangement# &IVA#' &a# "e#cri)e" )e$o!'( Te%rotoco$ recogni#e# tat te IVA #u%%ort# a va$i" %u)$ic %o$icy o)*ective )y %rovi"ing"e)t re$ief for in"ivi"ua$# in financia$ "i#tre##( It a$#o recogni#e# tat at te centre ofti# %roce## tere i# a %er#on+ !o nee"# to un"er#tan" te %roce## an" tea##ociate" %a%er!or, an" te im%act tat te IVA !i$$ ave on teir $ive#(

Scope of the protocol

2(1 Te %rotoco$ i# a vo$untary agreement+ !ic %rovi"e# an agree" #tan"ar" frame!or, for"ea$ing !it #traigtfor!ar" con#umer IVA# an" a%%$ie# to )ot IVA %rovi"er# an"

cre"itor#( -y acce%ting te content of te %rotoco$+ IVA %rovi"er# an" cre"itor# agreeto fo$$o! te %roce##e# an" agree" "ocumentation tat form# %art of te %rotoco$(IVA %rovi"er# in"icate teir acce%tance of te content of te %rotoco$ )y "ra!ing u% a%ro%o#a$ )a#e" on te #tan"ar" "ocumentation+ an" !ic #tate# tat it fo$$o!# te%rotoco$( Cre"itor# are e.%ecte" to a)i"e )y te term# of te %rotoco$ in re$ation to%ro%o#a$# "ra!n u% on tat )a#i#(

2(2 Cre"itor# !o are mem)er# of te -riti# -an,er#/ A##ociation ave in"icate" teir#u%%ort for te %rotoco$ %roce## in a $etter attace" at Anne. 1( A $i#t of --Amem)er# can )e foun" at !!!())a(org(u,

2( It i# acce%te" tat an IVA i# a regu$ate" %roce## un"er #tatute+ !ic reuire# certain!or, to )e un"erta,en+ !ic may ave a co#t unconnecte" !it te #ie of te IVA(

2(4 Te %rotoco$ "oe# not overri"e te regu$atory frame!or, re$evant to eac %arty &Anne.2'(

2(3 or te avoi"ance of "ou)t+ IVA %rovi"er mean# )ot in#o$vency %ractitioner# an" IVA%rovi"er firm# em%$oying in#o$vency %ractitioner#( Reference# to cre"itor in ti#%rotoco$ refer to )ot cre"itor# an" te agent# !o vote on teir )ea$f an" act inaccor"ance !it teir in#truction# in re$ation to an IVA(

2(5 Te efficient o%eration of te %rotoco$ !i$$ )e monitore" an" revie!e" )y a #tan"ing

committee( Te #tan"ing committee i# a re%re#entative grou%+ it# mem)er#i%ref$ecting te %artici%ant# in te IVA %roce## &"e)tor+ cre"itor+ IP+ regu$atory )o"ie#an" government'( Te term# of reference of te #tan"ing committee an" "etai$# of it#current mem)er#i% are attace" at &Anne. '( Te committee/# ro$e !i$$ inc$u"ecommunication an" con#u$tation+ !ere nece##ary+ on future "eve$o%ment# on teIVA %rotoco$(

The straightforward consumer IVA

(1 6ot a$$ ca#e# can )e c$a##ifie" a# a #traigtfor!ar" con#umer IVA( A %er#on #uita)$e for a#traigtfor!ar" con#umer IVA i# $i,e$y to )e 7

In recei%t of a regu$ar income eiter from em%$oyment or from a regu$ar %en#ion(

2
http://www.bba.org.uk/http://www.bba.org.uk/


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8ave or more $ine# of cre"it from 2 or more cre"itor#(

(2 Age i# not a con#i"eration+ nor i# te "e)t $eve$+ toug )ot factor# !i$$ im%act on teovera$$ via)i$ity of te IVA(

( Te %rotoco$ i# #uita)$e for )ot ome o!ner# an" non ome o!ner#( Tere #ou$" )e

no circum#tance# !ere te in"ivi"ua$ !ou$" )e force" to #e$$ teir %ro%erty in#tea"of re$ea#ing euity( Te on$y e.ce%tion# !ou$" )e !ere ti# !a# %roactive$y%ro%o#e" )y te in"ivi"ua$(

(4 or in"ivi"ua$# !o#e circum#tance# "o not meet te a)ove criteria an IVA may #ti$$ )ete mo#t a%%ro%riate mean# of "ea$ing !it teir financia$ %ro)$em# )ut teir ca#e i#un$i,e$y to )e #uita)$e for te fu$$ a%%$ication of te %rotoco$ %roce"ure#( Te fo$$o!ingare in"icator# tat a %er#on/# circum#tance# are un#uita)$e for te a%%$ication of te%rotoco$(

9i#%ute" "e)t# : tere #ou$" )e no ,no!n materia$ "i#%ute# in re$ation to te

"e)t(

Inve#tment %ro%ertie# : to#e !it inve#tment %ro%ertie# !ou$" not )e #uita)$e for

a #traigtfor!ar" con#umer IVA(

Po##i)i$ity of fu$$ an" fina$ #ett$ement : !ere a fu$$ an" fina$ #ett$ement i# %o##i)$e

in te fir#t year(

(3 A rea#ona)$y #tea"y income #tream i# nece##ary in or"er to )e #uita)$e for tea%%$ication of te %rotoco$( Tere i# noting to %revent ti# %rotoco$ )eing a%%$ie" toin"ivi"ua$# !o are #e$f:em%$oye"+ !en tat #e$f:em%$oyment %ro"uce# regu$arincome( ;ere income i# uneven


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nominee #a$$ recor" !itin i#


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Verification of information contained in the proposal

Assets

D(1 A# reuire" in any IVA+ #te%# #ou$" )e ta,en to en#ure tat te va$ue of a$$rea$i#a)$e a##et# i# a%%ro%riate$y ref$ecte" in te #tatement of affair#( Ti# mayreuire in"e%en"ent evi"ence of va$uation to )e o)taine" in te ca#e of materia$a##et#(

$ia#ilities

D(2 u$$ "etai$# #ou$" )e o)taine" from te "e)tor of a$$ ,no!n an" %otentia$ cre"itor#(Te IVA %rovi"er #ou$" u#e teir )e#t en"eavour# to verify te out#tan"ing )a$ance#)y o)taining #tatement#+ $etter# or co%ie# of agreement# from eac cre"itor "ate"!itin 5 !ee,# of te "e)tor/# fir#t a%%roac to te IVA %rovi"er+ an" u%"ate" a#nece##ary to ref$ect any cange# %rior to te i##ue of te IVA %ro%o#a$( If for

!atever rea#on te IVA %rovi"er i# una)$e to verify any materia$ cre"itor )a$ance#+ti# #ou$" )e i"entifie" in te 6ominee/# re%ort(

Income

D( Income #ou$" )e verifie" )y mean# of mont# of %ay #$i%#+ or a #uita)$e euiva$entfor te #e$f:em%$oye"+ an" )an, #tatement# &in te ca#e of !ee,$y %ay #$i%#+ it i##ufficient to cec, a #e$ection to cover te mont %erio"'( In te a)#ence of %ay#$i%# &e(g( if tey ave )een $o#t'+ ten )an, #tatement# #ou$" )e cec,e"(

D(4 If te "e)tor $ive# !it any %er#on age" 1 or over+ an" tere i# rea#ona)$ee.%ectation tat ti# %er#on !i$$ %ay )oar" an" $o"ging to te "e)tor+ ti# %aymentmu#t )e a""e" to te "e)tor/# income in fu$$(

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%&penditureD(3 Te e.%en"iture #tatement #ou$" )e for!ar":$oo,ing an" in $ine !it Ste%Cange

9e)t Carity gui"e$ine# &former$y CCCS' or te Common inancia$ Statement &CS'(@enera$$y+ tere #ou$" )e no "eviation from te e.%en"iture gui"e$ine#( 8o!ever+!ere a""itiona$ e.%en"iture i# nece##ary+ for e.am%$e "ue to #%ecia$ "ietary

reuirement# or increa#e" eating )i$$# "ue to caring for e$"er$y re$ative# or a)oveaverage !or,:re$ate" trave$ co#t#+ ti# #ou$" )e c$ear$y e.%$aine"(

D(5 a' If te "e)tor !i#e# to continue to %ay for ea$t in#urance or %ayment %rotectionin#urance+ te %ro%o#a$ #ou$" contain a note #tating !y ti# i# con#i"ere" to )ee##entia$ e.%en"iture(

)' ;ere te "e)tor i# )e$o! te age of 33 at "ate of entry into te IVA+ on$yminimum contri)ution# to te %en#ion #ceme #ou$" )e a$$o!e"( ;ere te "e)tori# age" 33 or a)ove at te "ate of entry into te IVA+ an average of te $a#t 5 mont#/%en#ion contri)ution# #ou$" )e a$$o!e"+ #u)*ect to a contri)ution $imit of FD3 a)ovete minimum %en#ion contri)ution a$$o!e" )y te #ceme %er mont( If no minimum

contri)ution i# #tate" )y te #ceme+ "e)tor contri)ution# !i$$ )e re#tricte" to 4= ofte "e)tor/# gro## #a$ary( ;ere te "e)tor i# a mem)er of mu$ti%$e #ceme#+ te#e$imit# #ou$" )e a%%$ie" to te aggregate amount of te "e)tor/# contri)ution#(

D(D Te e.%en"iture e$ement# tat reuire forma$ verification are7

Secure" $oan %ayment# : verification )y #igt of re$evant mortgage or )an,

#tatement#(

Rent G verification )y #igt of rent agreement or re$evant )an, #tatement entrie#(

Counci$ ta. G verification )y #igt of counci$ ta. )i$$ or re$evant )an, #tatement

entrie#(

Veic$e inanceG verification )y mean# of re$evant 8P


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%rotoco$ Stan"ar" Con"ition# to cre"itor#+ )ut te %rovi"er mu#t ma,e c$ear o! aco%y of te#e can )e o)taine"( A ar" co%y mu#t )e ma"e avai$a)$e on reue#t!itout carge( Simi$ar$y+ any variation from te %rotoco$ &for e.am%$e #%ecia$ "ietaryreuirement#+ #ee %aragra% D(3' #ou$" )e c$ear$y i"entifie" in a$$ re$evant%a%er!or,(

(uring the IVA

)ome e*uit +,et worth-

H(1 Si. mont# %rior to te e.%iry of te IVA &ereinafter referre" to a# te revie! "ate'+ tere#ou$" )e an attem%t to re$ea#e te "e)tor/# net !ort in te %ro%erty( Te revie!"ate !ou$" norma$$y )e after mont 34+ un$e## te IVA a# )een e.ten"e" for anyrea#on( 8o!ever+ #u)*ect to H( )e$o!+ !ere te "e)tor i# una)$e to o)tain aremortgage+ te #u%ervi#or !i$$ ave te "i#cretion to con#i"er acce%ting one of tefo$$o!ing a$ternative %ro%o#a$#7

a tir" %arty #um euiva$ent to 3= of te va$ue of te "e)tor/# intere#t in te%ro%erty or

12 a""itiona$ mont$y contri)ution# &!it te aggregate #um %ai" to te

#u%ervi#or )eing $imite" to 3= of te va$ue of te "e)tor/# intere#t in te%ro%erty'(

H(2 Te amount of te net !ort to )e re$ea#e" !i$$ )e )a#e" u%on affor"a)i$ity from incomean" !i$$ $eave te "e)tor !it at $ea#t 13= of i#


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;ere %o##i)$e+ continue to ma,e mont$y contri)ution# into te IVA a# #et

out at te $a#t annua$ revie! "ate

ee% te #u%ervi#or informe" of any cange# in em%$oyment #tatu#(

;ere te "e)tor i# una)$e to ma,e contri)ution# ti# !i$$ )e revie!e" )y te#u%ervi#or(

At te %oint ne! em%$oyment i# o)taine" te #u%ervi#or !i$$ revie! te "e)tor/# IVAcontri)ution# an" at tat %oint tere !i$$ )e an e.%ectation tat any remainingre"un"ancy fun"# !i$$ )e %ai" into te IVA+ an" te "e)tor/# %erformance in ti#regar" !i$$ )e re%orte" to cre"itor#(

10(3&)' ai$ure to "i#c$o#e any #uc entit$ement to re"un"ancy %ayment !i$$ )e con#i"ere" a)reac of te IVA(

10(5 A "e)tor !i$$ )e a$$o!e" a %ayment )rea, of u% to 5 mont# once "uring te term of teIVA !itout any mo"ification )eing reuire" at te "i#cretion of te #u%ervi#or( Teterm of te IVA !i$$ )e e.ten"e" )y te $engt of te %ayment )rea, #o tat te "e)tor!i$$ ma,e te #ame num)er of contri)ution# a# agree" in te origina$ %ro%o#a$( Anagree" %ayment )rea, !i$$ not con#titute a )reac( ;ere te #u%ervi#or agree# a%ayment )rea,+ te cre"itor# #ou$" )e notifie" !itin mont# from te "ate ofagreement( At te conc$u#ion of an agree" %ayment )rea, te #u%ervi#or #a$$ ifnece##ary revie! te %o#ition an" con#u$t !it cre"itor# !ere a%%ro%riate(

10(D ;ere te in"ivi"ua$ a# fai$e" to "i#c$o#e e.ce%tiona$ income+ te term of te IVA may)e e.ten"e" )y u% to a ma.imum of 5 mont# to recover any #um# "ue &to correct te)reac'+ !itout any mo"ification )eing reuire"(

10( ;ere te in"ivi"ua$ i# una)$e to reme"y any )reac of te arrangement+ te

#u%ervi#or mu#t re%ort !itin 2 "ay# to te cre"itor# an" eiter i##ue a Certificate ofTermination or if te Su%ervi#or fee$# it a%%ro%riate #ee, cre"itor vie!# to "o one of tefo$$o!ing7

vary te term# of te arrangement+ or

i##ue a certificate &KCertificate of Termination' terminating te arrangement )y

rea#on of te )reac an"


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a%%ointe" nominee an" #u%ervi#or in re$ation to te efficient o%eration of ti#%rotoco$(

12( Len"er# #ou$" ta,e rea#ona)$e mea#ure# to avoi" offering furter cre"it toin"ivi"ua$# ,no!n to ave an IVA in %$ace+ un$e## ti# i# in *u#tifia)$e circum#tance#&e(g( for re:mortgage %ur%o#e#'( 8o!ever+ it #ou$" )e recogni#e" tat re$evant

information i# not a$!ay# rea"i$y avai$a)$e to cre"itor# an" may #ometime# )e!ite$" )y "e)tor#(

Acceptance of protocol compliant IVAs

1(1 It i# un"er#too" tat one of te aim# of te %rotoco$ i# to im%rove efficiency in te IVA%roce## an" to ti# e.tent cre"itor# an" IVA %rovi"er# !i$$ avoi" te nee" formo"ification# of an IVA %ro%o#a$ !erever %o##i)$e( Ti# "oe# not affect te rigt ofcre"itor# to vote for or again#t an IVA %ro%o#a$(

1(2 ;ere a cre"itor or teir agent on teir )ea$f vote# again#t a %rotoco$ com%$iant IVA%ro%o#a$+ teir rea#on for #o "oing #ou$" )e "i#c$o#e" to te IVA %rovi"er(

1( -y voting in favour of a %rotoco$ com%$iant IVA+ cre"itor# acce%t tat te #u%ervi#ora# "i#cretion a# referre" to in #ection 10 a)ove an" in te #tan"ar" term#+ an"#ou$" not ca$$enge te u#e of tat "i#cretion(

1(4 Cre"itor# #ou$" ma,e rea#ona)$e en"eavour# to %rovi"e a %roof of "e)t &in te formreuire" )y te IVA %rovi"er' an" %ro.y form !itin 14 "ay# of recei%t of an IVA%ro%o#a$ an" if %o##i)$e at $ea#t D "ay# )efore te "ate of te meeting ca$$e" toa%%rove te %ro%o#a$(

1(3Cre"itor# not #u)mitting c$aim# !itin 4 mont# of te meeting to a%%rove te%ro%o#a$ or )y te "ate of te fir#t "ivi"en" &!icever i# te $ater' !i$$ )e entit$e" to%artici%ate an" receive teir fu$$ #are of "ivi"en"# u)*ect to te reuirement for te#u%ervi#or to a"*u"icate te autenticity an" va$ue of te c$aim'+ )ut are not entit$e"to "i#tur) a "i#tri)ution ma"e %rior to te #u)mi##ion of teir c$aim(

Income and e&penditure

14(1 Cre"itor# !i$$ norma$$y acce%t income an" e.%en"iture #tatement# "ra!n u% on te)a#i# of genera$$y acce%te" #tan"ar" financia$ #tatement# an" verifie" in accor"ance!it ti# %rotoco$+ a# te )a#i# of a %rotoco$ com%$iant IVA %ro%o#a$( or ti# %ur%o#e#tan"ar" financia$ #tatement# inc$u"e# te Ste%Cange 9e)t Carity gui"e$ine# an"te CS &an" any revi#ion# in re#%ect tereof'(

14(2 Cre"itor# !i$$ fo$$o! te gui"ance in te -an,ing


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15(1 ;ere "e)t i# #o$" !en an IVA i# %ro%o#e" )ut )efore it a# )een a%%rove"+cre"itor# #ou$" en#ure tat te "e)t )uyer i# a #ignatory to te -an,ing


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Anne& 1

1 9ecem)er 200D

"P%, $%TT%/ T" I,S"$V%,C S%/VIC%

At our *oint$y o#te" IVA orum on 1#t?ay a reue#t !a# ma"e tat te --A %rovi"e a

!ritten re#%on#e to te K#traigtfor!ar" con#umer:)a#e" IVA %ro%o#a$# to confirm te#u%%ort of mem)er )an,# for ti# in"u#try:$e" %ro%o#ition(

In my o%en $etter of 24 t?ay+ *u#t %rior to te IVA orum+ I !a# a)$e to confirm tat our #eniorcommittee a" agree" in %rinci%$e to te %ro%o#a$# %ut for!ar"( Since tat time teIn#o$vency Service+ togeter !it in"u#try %artici%ant#+ a# continue" to !or, ar" to!ar"#im%$ementation of te IVA %rotoco$ an" re$ate" #tan"ar" "ocumentation( Te %rotoco$ a#no! )een revi#e" in or"er to %rovi"e it# content in a format con#i"ere" to )e morea%%ro%riate to in"u#try u#er# an" to %rovi"e c$arification of te o)$igation# of cre"itor# inre$ation to te IVA %roce##( ;e are+ o!ever+ #ati#fie" tat tere ave )een no #u)#tantivecange# in te %ro%o#a$# %re#ente" to te IVA orum+ !ic !ere of cour#e )a#e" on terecommen"ation# ma"e )y te four cro##:in"u#try !or,ing %artie#( On tat )a#i# I am%$ea#e" to )e a)$e to confirm te continuing #u%%ort of our mem)er# a# !e move to!ar"#fu$$ im%$ementation of te ne! #tan"ar"#( In %ractice tat mean# tat our mem)er# aree.%ecte" to a)i"e )y te term# of te %rotoco$ in re$ation to %ro%o#a$# "ra!n u% on te )a#i#of te %rotoco$(

It !a# e$%fu$ to #ee from your recent #tatement tat tere remain# a #trong commitmentfrom a$$ %artie# tat you met !it over te #ummer to te IVA orum< Protoco$ %roce##( ;e!ou$" a$#o concur !it your comment tat K"e)tor# #ou$" ave acce## to te "e)tmanagement #o$ution i"entifie" a# te mo#t a%%ro%riate to teir circum#tance# an" teira)i$ity to re%ay teir "e)t in a rea#ona)$e time#ca$e G !ere te mo#t a%%ro%riate #o$ution i#an IVA+ ten our o%e i# tat an IVA i# ma"e avai$a)$e(

;e a$#o #ee, a #ati#factory outcome for a$$ #ta,eo$"er# an" con#i"er ti# i# mo#t $i,e$y to)e acieve" in a time$y an" effective manner troug conc$u#ion of te in"u#try %roce##+rater tan $oo,ing for a regu$atory #o$ution( Te o%e e.%re##e" )y cre"itor# at te time ofte IVA orum !a# tat if tru#t continue" to )ui$" troug te cro##:in"u#try !or,+ tencre"itor# migt fee$ more confi"ent to re:e.amine teir o!n %ractice# in re$ation to tecon#i"eration of IVA %ro%o#a$#( ;e reiterate tat #tatement an" con#i"er tat "e$ivery of teIVA %rotoco$ i# e##entia$ to te )ui$"ing of tat tru#t(

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;e agree to ti# $etter )eing a%%en"e" to te IVA %rotoco$ "ocument !ic !a# a%%rove" atte meeting of te Stan"ing Committee on 0t6ovem)er(

our# #incere$y

%ric $eendersExecutive Director

T M44&0'20 D215 3DE eric($een"er#N))a(org(u,

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Protocol Anne& 2

/egulator framewor

Insolvenc practitioners

$egislationIn#o$vency %ractitioner# mu#t com%$y !it te In#o$vency Act 1H5+ re$evant #econ"ary$egi#$ation #uc a# te In#o$vency Ru$e# 1H5 an" #tatement# of in#o$vency %ractice &SIP#'(S%ecifica$$y+ SIP "ea$# !it vo$untary arrangement# an" SIP H remuneration of in#o$vencyoffice o$"er#( SIP reuire# te IP to "ocument te a"vice given an" e.%$ain ti# to te"e)tor(

Insolvenc regulationIn#o$vency %ractitioner# are $icen#e" )y one of #even autori#ing )o"ie# an" te Secretaryof State &KSoS'( Licence# are grante" to in"ivi"ua$# an" in#o$vency a%%ointment# are ta,en

in te in#o$vency %ractitioner/# name+ not )y te firm in !ic e or #e !or,#( To o)tain a$icence an a%%$icant mu#t ave %a##e" a #erie# of #%ecific in#o$vency e.amination#+ ave#ufficient in#o$vency e.%erience an" ave #ati#fie" te autori#ing )o"y or SoS tat tey area fit an" %ro%er %er#on(

A$$ in#o$vency %ractitioner# are #u)*ect to monitoring )y teir autori#ing )o"y !it amemoran"um of un"er#tan"ing )et!een te )o"ie# an" te SoS #etting out te frame!or,for te monitoring %roce##( ?onitoring inc$u"e# vi#it# to te in#o$vency %ractitioner to revie!te %ractitioner/# com%$iance !it te $egi#$ation+ SIP# etc an" te %rovi#ion of informationvia annua$ &or more freuent' re%ort#


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!i$$ a$#o )e #u)*ect to greater #crutiny at te $icence a%%$ication #tage an" greater monitoringtrougout te $ife of te $icence(

inancial "m#udsman Serviceor a$$ #tan"ar" con#umer cre"it $icence o$"er#+ teir cu#tomer# ave te rigt to refer

unre#o$ve" "i#%ute# to te inancia$ Om)u"#man Service( Ti# a$$o!# "e)tor# "ea$ing !itan In#o$vency Practitioner or "e)t a"vice firm o$"ing a #tan"ar" $icence+ to )ring anunre#o$ve" com%$aint to te Om)u"#man re$ating to te a"vice tey a" receive"( Simi$arcom%$aint# a)out an In#o$vency Practitioner covere" )y a @rou% $icence e$" )y teirregu$ator cou$" not )e )rougt to te Om)u"#man+ )ut #ou$" )e )rougt to te autori#ing)o"y !ic a" $icen#e" te In#o$vency Practitioner(

Creditors and their agents

6aning Code and the 6aning Code Standards 6oard +6CS6-

Te -an,ing Co"e# are te main #ource of con"uct of )u#ine## #tan"ar"# for Co"e#u)#cri)er# an" cover a$$ te ma*or )an,# an" )ui$"ing #ocietie# an" te ma*ority of #ma$$er%rovi"er# of )an,ing #ervice# to %er#ona$ an" #ma$$ )u#ine## cu#tomer# in te >( Te-an,ing Co"e i# o!ne" )y te tree #%on#oring )o"ie# G te --A+ -SA an" APACS( Te-u#ine## -an,ing Co"e i# o!ne" )y te --A an" APACS(

Te -CS- a# re#%on#i)i$ity to it# #u)#cri)er# an" #%on#or# for monitoring com%$iance !itan" enforcement of te -an,ing an" -u#ine## -an,ing Co"e#+ vo$untary co"e# of %racticecovering con"uct of )u#ine## in re$ation to current account# an" over"raft#+ %er#ona$ $oan#+#aving#+ %ayment #ervice# an" cre"it car"#(

Te -CS-/# monitoring ro$e an" enforcement %o!er# "erive from te $ega$ contract# #igne")y a$$ #u)#cri)er# to te Co"e#+ o)$iging tem to com%$y !it te Co"e# an" @ui"ance an"te -an,ing Co"e Ru$e#+ Com%$iance Po$icy an" 9i#ci%$inary Proce"ure(

The inancial Services AuthoritTe SA i# te >/# %rimary financia$ regu$ator an" i# e#ta)$i#e" un"er te inancia$Service# an" ?ar,et# Act 2000 &S?A'( It aim# to %romote efficient+ or"er$y an" fair financia$mar,et#+ to e$% retai$ con#umer# acieve a fair "ea$ an" to im%rove it# )u#ine## ca%a)i$ityan" effectivene##(

Te SA i# an#!era)$e+ troug 8? Trea#ury+ to Par$iament for te effective "i#carge of it#function#( ;itin te #co%e of S?A+ te SA i#+ among#t oter ting#+ re#%on#i)$e for teautori#ation an" #u%ervi#ion of )an,#+ )ui$"ing #ocietie#+ inve#tment firm#+ in#urancecom%anie# an" )ro,er#+ cre"it union# an" frien"$y #ocietie#( Te SA a$#o a%%$ie# con"uctof )u#ine## regu$ation for te mortgage+ genera$ in#urance an" inve#tment activitie# of te#efirm#(

Te SA/# focu# in re#%ect of retai$ )an,ing i# %rimari$y %ru"entia$+ encom%a##ing ca%ita$a"euacy an" financia$ contro$#+ fitne## an" %ro%riety an" confi"ence in te financia$ #y#tem(

"T 3uidance

Te OT a# "e)t co$$ection gui"ance !ic a%%$ie# to a$$ con#umer cre"it $icence o$"er#an" a%%$icant# for te co$$ection of "e)t once an account i# in "efau$t( Te OT %roactive$ymonitor# $icence o$"er# )y carrying out %erio"ic revie!# of com%$iance !it it# @ui"ance+

15


16/48

an" via ro)u#t %roce##e# it a# in %$ace !it te main tra"e a##ociation#+ an" con#umerre%re#entative )o"ie# !it a vie! to #ecuring im%rove" com%$iance( To faci$itate ti# in June200D !e $aunce" com%$aint form# an" com%$aint evi"ence cec,$i#t# &avai$a)$e at7!!!(oft(g#i(gov(u,for u#e )y money a"vi#er# an" oter r"%arty organiation# !o !i# to#u)mit "etai$# of com%$aint# a)out "e)t co$$ector#+ "e)t management com%anie# an"


17/48

Protocol Anne& 7IVA STA,(I,3 C"88ITT%% 9 T%/8S " /%%/%,C%

P'/P"S%

To meet regu$ar$y an" %rovi"e information a)out te o%eration of te IVA Protoco$+ in%articu$ar7

8o! it interact# !it te IVA regime genera$$y

To i"entify %ro)$em#


18/48

Agen"a an" minute# of meeting# !i$$ )e recor"e" an" !i$$ )e ma"e avai$a)$e on TeIn#o$vency Service/# !e)#ite( urter mi#ce$$aneou# u%"ate# or action# !i$$ )ecommunicate" via e:mai$ to to#e on te 9ear IP contact $i#t an" %o#te" on TeIn#o$vency Service/# !e)#ite(

Te In#o$vency Service Po$icy 9irectorate !i$$ %erform te #ecretariat function of teCommittee(

='"/'8>V"TI,3

A uorum #a$$ )e H fu$$ mem)er# of te IVA Stan"ing Committee &inc$u"ingnominate" #u)#titute#'+ !it at $ea#t 4 re%re#enting IP#+ 4 re%re#enting cre"itor# an"1 re%re#enting con#umer#( or te avoi"ance of "ou)t te Cair i# a fu$$ mem)er ofte IVA Stan"ing Committee(

;i$#t it i# o%e" tat "eci#ion# can )e arrive" at via con#en#u#+ in te event of a

vote )eing reuire"+ agreement !i$$ )e a #im%$e ma*ority of to#e fu$$ mem)er#%re#ent &or teir nominate" #u)#titute#'+ !it te Cair o$"ing a ca#ting vote(

9ate7 Augu#t 2012

18


19/48

Anne& 9 mem#ership

Re%re#enting IP#

R G @raam Rumney &grumneyNr(org(u,'9E?SA G ?e$anie Tay$or &?e$anie(tay$orNtin,money(com '9R G 9avi" ?on" &"mon"No"g#on#(co(u,'?oney P$u# @rou% G Ste%en uinn te%en(uinnNmoney%$u#grou%(co(u,'Pay%$an G Jon airur#t &*on(fairur#tN%ay%$an(com'Li)erta G Li Py!o!arcu, &$iN$i)erta(u,(com'CCCS G Jac,ie ;e#terman &*ac,ie!Nccc#va(co(u,'ICAE; G Tracy Stano%e &tracy(#tano%eNicae!(com'IPA G 9avi" err &"a,Ni%a(com'

Re%re#enting Cre"itor#

--A G Pau$ Ro## &%au$(ro##N))a(org(u,'-an, of America G -rian Jac,#on &)rian(*ac,#onN)an,ofamerica(com'Coo%erative -an, G Peter ;arton &%eter(!artonNcf#(coo%'?a. Recovery G Cri#to%er "e $a Sa$$e &c"e$a#a$$eN*%morgan(com'Lo!e$$ @rou% G 6ic, @aunt &nic,(gauntN$o!e$$grou%(co(u,'@rant Tornton G ?icae$ Peacoc, &micae$(%eacoc,Ngtu,(com'T9Q G ?artin Prigent &martin(%rigentNt".grou%(com'8?RC G Si" ?e%#tea" i"(me%#tea"Nmrc(g#i(gov(u, '

Re%re#enting Con#umer#

?AT G ?eg Van Rooyen &meg(vanrooyenNnationa$"e)t$ine(co(u,'Citien# A"vice G 8e$en ?cCarty &e$en(mccartyNcitien#a"vice(org(u,'CA G 9avi" Pi$%ott &"avi"(%i$%ottNfca(org(u,'

La#t u%"ate7 Augu#t 2012

19
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


20/48

Protocol Annex 4

STA,(A/( C",(ITI",S "/

I,(IVI('A$ V"$',TA/ A//A,3%8%,TS

Produced # the

IVA "/'8

/evised ,ovem#er 2017

or use in proposals issued on or after 1 ?anuar 2014

20


21/48

TA6$% " C",T%,TS "/ STA,(A/( C",(ITI",S

PA/T I: I,T%/P/%TATI", Page

1 9efinition# 4

2 Te Con"ition# 3

PA/T II: T)% STA/T. %%CT A,( ('/ATI", " T)% A//A,3%8%,T

;en te arrangement !i$$ #tart 5

4 Te nature an" effect of te arrangement 5

3 8o! $ong te arrangement !i$$ $a#t D

5 Com%$eting te arrangement DD Su)#tantia$ com%$iance

PA/T III: "'/ ('TI%S A,( "6$I3ATI",S

our "utie# in re$ation to te Su%ervi#or H

PA/T IV: 6/%AC) "/ ,",!C"8P$IA,C%

H&1' If you )reac te arrangement 12

H&2' If you fai$ to com%$y 1

H&' Proce"ure fo$$o!ing )reac 1

H&4' Reme"y of )reac 1

H&3' ai$ure to reme"y )reac 14

H&5' Termination on your reue#t 14

PA/T V: T)% S'P%/VIS"/@S ',CTI",S. P"%/S %TC

10 Su%ervi#or/# "utie# 13

11 Removing te Su%ervi#or from office 15

12 ;en te Su%ervi#or $eave# office 15

1 Vacancy in te office of Su%ervi#or 1D

PA/T VI: A//A,3%8%,T ASS%TS

14 A##et# an" after acuire" a##et# 1

13 8o$"ing arrangement a##et# in tru#t 1

15 In te event of your "eat 1


22/48


23/48

PA/T I

I,T%/P/%TATI",

1 (efinitions

In te arrangement+ e.ce%t !ere te conte.t reuire# a "ifferent

meaning7

a' Kthe Act mean# te In#o$vency Act 1H5 a# amen"e"

)' Kthe arrangement mean# te %ro%o#a$ an" te con"ition# rea"

togeter

c' Kou o r Kthe de#tor mean# te %er#on !o ma,e# te

%ro%o#a$

"' Kdividend mean# a "i#tri)ution to cre"itor#

e' Kpropert a# te meaning given to it in Section 45 of te Act

f' Ke&cluded assets are to#e a##et# tat are e.c$u"e" from an

e#tate in )an,ru%tcy an" any oter a##et# i"entifie" in te

%ro%o#a$ a# )eing e.c$u"e" from te arrangement Kafter

ac*uired assetsmean# any a##et+ !in"fa$$ or ineritance !it

a va$ue of more tan F300+ oter tan e.c$u"e" a##et# tat you

acuire or receive )et!een te "ate te arrangement #tart# an"

te "ate it en"# or i# com%$ete"+ if ti# a##et cou$" ave )een an

a##et of te arrangement a" it )e$onge" to or )een ve#te" in

you at te #tart of te arrangement

g' Kthe effective date i# te "ate !en te arrangement i#

a%%rove" at a cre"itor# meeting to con#i"er te arrangement

' Kthe proposal i# te anne.e" "ocument !it mo"ification# an"

"ocument# incor%orate"+ an" i# a %ro%o#a$ un"er Part VIII of te

Act

The Straightforward Consumer I! "roto#o$ 2014 %ersion

2


24/48

i' Kthe /ulesK mean# te In#o$vency Ru$e# 1H5 &a# amen"e"'

*' an Kunsecured creditor i# any cre"itor+ e.ce%t a #ecure"

cre"itor+ !o i# your cre"itor for any rea#on tat originate" or

occurre" on or )efore te time an" "ate of a%%rova$ of te

arrangement

,' A Ksecured creditor i# any cre"itor !o o$"# #ecurity in

accor"ance !it Section of te Act

$' Kthe Supervisor i# te %er#on or %er#on# for te time )eing

a%%ointe" to #u%ervi#e te im%$ementation of te arrangement

m' any term of gen"er &$i,e e/+ #e/ or it/' inc$u"e# any gen"er(

2 The conditions

Te con"ition# are an integra$ %art of te arrangement( In te event of

any am)iguity or conf$ict )et!een te con"ition# an" te %ro%o#a$ an"

any mo"ification# to it+ ten te %ro%o#a$ &a# mo"ifie"' #a$$ %revai$(

PA/T II

T)% STA/T. %%CT A,(

('/ATI", " T)% A//A,3%8%,T

7 hen the arrangement will start

Te arrangement !i$$ )egin !en it i# a%%rove" )y te cre"itor# un"er

te Act an" Ru$e#( Ti# i# it# effective "ate(

4 The nature and effect of the arrangement

4+1- Te arrangement i# a %ro%o#a$ un"er Part VIII of te Act for a #ceme

to manage your affair#+ or in fu$$ an" fina$ #ett$ement of your "e)t#(

4+2- Te arrangement may )e inter%rete" a# )ringing a)out a #ett$ement or

#ati#fying a "e)t o!e" )y #omeone oter tan you on$y if te "e)t i#


24


25/48

o!e" *oint$y )y you an" te %ro%o#a$ #tate# tat it "oe# #o+ an" if te

cre"itor agree#( Oter!i#e+ te %rovi#ion# of %aragra% 0 !i$$ a%%$y(

4+7- After te arrangement a# )egun+ no cre"itor may+ in re#%ect of any

"e)t to !ic te arrangement a%%$ie#7

&i' ta,e any action again#t your %ro%erty or %er#on

&ii' #tart or continue any action or oter $ega$ %rocee"ing again#t

you(

4+4- 6oting in te#e con"ition# affect# te fo$$o!ing rigt# in any !ay7

&i' te rigt of any #ecure" cre"itor to enforce teir #ecurity+ un$e##

tey

agree

&ii' te rigt of te Su%ervi#or or any cre"itor to %re#ent a

)an,ru%tcy %etition un"er #ection 254&1'&c' of te Act if you fai$

to ,ee% to te arrangement

&iii' te rigt of any cre"itor to )ring or continue $ega$ %rocee"ing#

again#t you an" to o)tain a *u"gment again#t you for te fu$$

amount of teir "e)t for te #o$e %ur%o#e of ma,ing a c$aim

again#t your in#urer un"er te Tir" Party &Rigt# Again#t

In#urer#' Act 1H0(

D )ow long the arrangement will last

D+1- >n$e## e.ten"e" un"er te#e con"ition#+ te arrangement !i$$ continue

unti$ te en" of te %erio" #tate" in te %ro%o#a$(

D+2- Te Su%ervi#or may+ if e


26/48

D+7- Te Su%ervi#or mu#t #en"any e.ten#ion notice at $ea#t D "ay# )efore

te arrangement i# "ue to e.%ire an" mu#t #tate te rea#on# for te

e.ten#ion(

D+4- ;ere an e.ten#ion notice i# #ent+ te arrangement !i$$ continue for

te %erio" #tate" in te notice+ or for te ma.imum a$$o!a)$e %erio" for

tat e.ten#ion &5 mont# for a fir#t e.ten#ion an" mont# for a

#econ" e.ten#ion'+ !icever i# #orter( Te e.ten#ion !i$$ #tart on te

"ate imme"iate$y after te "ay te arrangement !ou$" ave e.%ire"(

D+D- If te Su%ervi#or a# ca$$e" a cre"itor# meeting for a "ate after te

arrangement !ou$" oter!i#e ave e.%ire"+ ten te arrangement !i$$

)e e.ten"e" to te "ate of tat meeting an" of any a"*ournment to te

meeting(

D+E- ;ere you ave fai$e" to "i#c$o#e e.ce%tiona$ income+ te term of te

IVA may )e e.ten"e" )y u% to a ma.imum of 5 mont# to recover any

#um# "ue+ !itout any mo"ification )eing reuire"(

D+F- Any e.ten#ion for a %erio" $onger tan a$$o!e" un"er %aragra% 3&2'mu#t )e a%%rove" )y a variation(

E Completing the arrangement

E+1- ;en te arrangement en"#+ an" if you ave com%$ie" !it your

o)$igation# un"er te arrangement+ te Su%ervi#or !i$$ i##ue a

certificate &Kte com%$etion certificate' #tating tat you ave fu$$y

com%$ie" !it it(

E+2- E.ce%t a# #et out in %aragra% 4&4'+ !en te Su%ervi#or a# i##ue" a

com%$etion certificate+ you !i$$ )e re$ea#e" from a$$ "e)t# tat are

#u)*ect to te arrangement(


25


27/48

F Su#stantial compliance

F+1- Te Su%ervi#or may+ if e


28/48


29/48

cre"itor# in te ne.t annua$ re%ort !it %ro%o#a$# for o! te )reac i#

to )e rectifie"(


30/48

PA/T IV

6/%AC) "/ ,",!C"8P$IA,C%

If ou #reach the arrangement

;+1- ou !i$$ )e regar"e" a# in )reac of te arrangement if7

&i' you ave at any time arrear# of contri)ution# euiva$ent to

mont# or more of te contri)ution# %ro%o#e" in te %ro%o#a$

u)*ect to te e.ce%tion# in %aragra%# &' an" &H''( If you

are in )reac in ti# !ay )ut $ater re%ay a$$ or #ome of te

arrear#+ you !i$$ )e in )reac again if te #ame $eve$ of arrear#

recur#

&ii' your "e)t# an" $ia)i$itie# e.cee" )y 13= or more te figure you

ave e#timate" for #uc "e)t# an" $ia)i$itie# for te %ur%o#e# of

te %ro%o#a$ &an" if #uc )reac occur# te Su%ervi#or !i$$ G

!itout affecting any oter a$ternative avai$a)$e to tem G a#,

te cre"itor# !at tey !i# to "o in te conte.t of te

arrangement overa$$'

&iii' information tat !a# fa$#e or mi#$ea"ing in any #ignificant "etai$ or

contain# any #ignificant omi##ion#7

a' !a# containe" in any #tatement of affair# or oter

"ocument tat you #u%%$ie" un"er Part VIII of te Act to

any %er#on or

)' !a# oter!i#e ma"e avai$a)$e )y you to cre"itor# at or in

connection !it any meeting of cre"itor# e$"+ or any

re#o$ution ta,en+ concerning te arrangement

&iv' you fai$ to "o anyting tat te Su%ervi#or may for te %ur%o#e#

of te arrangement rea#ona)$y a#, of you or

&v' you fai$ to com%$y !it any oter of your o)$igation# un"er te

arrangement(


0


31/48

If ou fail to compl

;+2- ,on!compliance with the arrangement

If you "o not com%$y !it your o)$igation# after te Su%ervi#or a#

given you !ritten notice #%ecifying o! $ong you ave to "o #o+ ten

te Su%ervi#or may en" te arrangement at i#


32/48

;+4- /emed of #reach

If+ !itin 1 : mont# a# referre" to in #u):%aragra% H&'+ you

&i' reme"y your )reac of te arrangement an"

&ii' if #o reuire" in te 6otice of -reac+ fu$$y e.%$ain te )reac+

ten te Su%ervi#or !i$$ ta,e no furter action again#t you+ e.ce%t to

re%ort te )reac to te cre"itor# !en e


33/48

PA/T V

T)% S'P%/VIS"/@S ',CTI",S. P"%/S %TC

Supervisor@s duties

10+1- Te Su%ervi#or mu#t #u%ervi#e your fu$fi$ment of your o)$igation# un"er

te arrangement an" a"mini#ter te arrangement(

10+2- Te Su%ervi#or mu#t $o"ge a$$ fun"# e$" for te %ur%o#e of te

arrangement in a > )an, or )ui$"ing #ociety account( 8e


34/48

10+


35/48

It mu#t )e accom%anie" )y a re%ort on te Su%ervi#or/# a"mini#tration

of te arrangement+ inc$u"ing an u%:to:"ate #ummary of recei%t# an"

%ayment#(

12 hen the Supervisor leaves office

12+1- If te cre"itor# re#o$ve to acce%t te re#ignation of a Su%ervi#or or to

remove a Su%ervi#or from office+ an" anoter %er#on !i$$ ta,e over te

office of Su%ervi#or for te time )eing+ ten te Su%ervi#or !o i#

re#igning or )eing remove" mu#t $eave office imme"iate$y(

12+2- If te cre"itor# re#o$ve to acce%t a Su%ervi#or/# re#ignation or to

remove a Su%ervi#or from office+ an" no oter %er#on ta,e# over te

office of Su%ervi#or for te time )eing+ ten tat re#ignation or remova$

!i$$ not ta,e effect( In tat ca#e te Su%ervi#or mu#t not $eave office

unti$ a cre"itor# meeting or te court a%%oint# a re%$acement

Su%ervi#or(

12+7- Te Su%ervi#or mu#t $eave office imme"iate$y if e


36/48

LLP or com%any a# te Su%ervi#or imme"iate$y )efore te vacancy

occurre"+ or )y te former Su%ervi#or/# autori#ing )o"y(

17+7- If a meeting of cre"itor# i# ca$$e" !en no Su%ervi#or i# in office+ te

%er#on !o convene" te meeting mu#t act a# cairman of tat

meeting(

PA/T VI

A//A,3%8%,T ASS%TS

14( Assets and after ac*uired assets

14+1- Pro%ertyoter tan e.c$u"e" a##et# )e$onging to or ve#te" in you at

te "ate of commencement of te arrangement !ic !ou$" form %art of your

e#tate in )an,ru%tcy #a$$ )e #u)*ect to te arrangement

14+2- Su)*ect to te fo$$o!ing #u):%aragra%+ te Su%ervi#or may c$aim a# an

a##et of te arrangement any after:acuire" a##et#( Any #uc a##et !i$$ )e

#u)*ect to an" )e an a##et of te arrangement(

14+7- After:acuire" a##et# mu#t on$y )e #o$" or rea$i#e" to te e.tent

nece##ary to re%ay te cre"itor# in fu$$ !it any intere#t tey are

entit$e" to un"er te arrangement(

1D )olding arrangement assets in trust

;i$#t te arrangement i# in force7

1D+1- ou mu#t o$" in tru#t for te %ur%o#e# of te arrangement any %ro%erty

in your %o##e##ion+ cu#to"y or contro$ tat i# an a##et of te

arrangement+ unti$ it i# rea$i#e" &if reuire"' in accor"ance !it te

arrangement(

1D+2- Te Su%ervi#or mu#t o$" in tru#t for te %ur%o#e# of te arrangement

any %ro%erty in i#


37/48

1E In the event of our death

1E+1- Sou$" you "ie "uring te term of te arrangement %ro%erty

con#tituting an a##et of te arrangement in your or te

Su%ervi#or/# %o##e##ion+ cu#to"y or contro$ #a$$ )e e$" u%on

tru#t for te %ur%o#e# of te arrangement unti$ it i# rea$i#e"(

PA/T VII

(IVI(%,(S A,( C$AI8S

(ividends and claims

1F+1- Te Su%ervi#or may acce%t for "ivi"en" %ur%o#e# c$aim# #u)mitte" )y

cre"itor# a# at te effective "ate( If any cre"itor "oe# not ma,e any

c$aim in !riting !itin 4 mont# after te effective "ate or )y te "ate of

te fir#t "ivi"en" &!icever i# te $ater'+ ten tat cre"itor may on$y

%artici%ate in "ivi"en" %ayment# to te e.tent #et out in %aragra% 1D(

)e$o!(

1F+2- Te Su%ervi#or a# te "i#cretion to a"mit c$aim# of F1+000 or $e##+ or

c$aim# #u)mitte" tat "o not e.cee" 110= of te amount #tate" )y te "e)tor

in te %ro%o#a$+ !itout te nee" for a""itiona$ verification(

1F+7- If a cre"itor ma,e# a $ate c$aim+ te Su%ervi#or !i$$ a$$o! ti# for

"ivi"en" %ur%o#e#+ #u)*ect to te reuirement to a"*u"icate te

autenticity an" va$ue of te c$aim( Te cre"itor !i$$ )e entit$e" to%artici%ate an" to receive teir fu$$ #are of "ivi"en"# inc$u"ing to#e

%ai" to "ate &in#ofar a# fun"# are or )ecome avai$a)$e'+ )ut i# not

entit$e" to "i#tur) a "i#tri)ution ma"e %rior to te #u)mi##ion of te $ate

c$aim(

1F+4- Te Su%ervi#or may a#, for any furter "etai$# or "ocument# e


38/48

1F+D- Te c$aim# of #ecure" cre"itor#+ foreign currency "e)t#+ "e)t# %aya)$e

at a future time+ an" intere#t on "e)t# !i$$ )e "ea$t !it in accor"ance !it te

-an,ru%tcy Ru$e#(

1F+E- ;ere Section 2 of te Act a%%$ie# an" a cre"itor i# o)$ige"+ for

!atever rea#on+ to ma,e a %ayment to you "uring te continuance of te

arrangement+ ten tat %ayment #a$$ )e u#e" fir#t in re"uction of tat

cre"itor/# c$aim( If #uc a%%$ication re#u$t# in te cre"itor/# c$aim )eing entire$y

e.tingui#e" any #ur%$u# !i$$ )e treate" a# an a##et of te arrangement an"

%ai" to te Su%ervi#or for te )enefit of te arrangement(

PA/T VIII

C/%(IT"/S )" (" ,"T )AV% ,"TIC%

Creditors who do not have notice

1


39/48

1;+2- If reue#te" in !riting )y you+ or )y cre"itor# !it at $ea#t one:uarter

in va$ue of te tota$ amount of "e)t# #u)*ect to te arrangement+ te

Su%ervi#or mu#t ca$$ a cre"itor# meeting !itin 21 "ay# from receiving

#uc reue#t+ un$e## te court "eci"e# e


40/48

arrangement i# a%%rove"+ "ue !it te #e$f:a##e##ment return on 1

January of te fo$$o!ing year(

21 Income #eginning after approval

ou !i$$ )e re#%on#i)$e for %ayment of #e$f:a##e##ment


41/48

Any re%ayment "ue to you from 8?RC re$ating to a %erio" )efore te

arrangement !a# a%%rove" #a$$ )e a%%$ie" fir#t$y again#t te 8?RC

c$aim in te arrangement( Any #ur%$u# !i$$ )e re%ai" to you an" you

mu#t %ay it to te Su%ervi#or for te )enefit of te arrangement(

Any re%ayment "ue to you from 8?RC re$ating to a %erio" after te

arrangement !a# a%%rove" #a$$ )e a%%$ie" fir#t$y again#t oter #um#

o!e" to 8?RC for te %o#t arrangement %erio"( Any #ur%$u# !i$$ )e

re%ai" to you an" you !i$$ %ay it to te Su%ervi#or for te )enefit of te

arrangement(

2F ,o response from )8/C

If you !ere not #e$f:em%$oye" an" ave not tra"e" "uring te ta. year

in !ic te IVA !a# agree" an" if tere are no out#tan"ing return#

"ue to 8? Revenue an" Cu#tom# &8?RC' an" no contact a# )een

ma"e )y 8?RC !it te Su%ervi#or !itin 4 mont# after te effective

"ate+ te Su%ervi#or a# te "i#cretion to "i#regar" te reuirement in

%aragra% 23 of te #tan"ar" con"ition# to not ma,e a non:%referentia$

"ivi"en" )efore te Su%ervi#or a# a"mitte" te 8?RC fina$ c$aim( If

te Su%ervi#or commence# %ayment of "ivi"en"#+ notification #ou$")e #ent to 8?RC an" fun"# may )e retaine" to %ay an euiva$ent

"ivi"en" to 8?RC )a#e" on te amount #o!n in te #tatement of

affair#(

PA/T BI

8ISC%$$A,%"'S P/"VISI",S

2


42/48

2; Invalidit or illegalit

If any %art of te arrangement i# foun" to )e contrary to te Act or

Ru$e#+ i$$ega$+ inva$i"+ or contrary to %u)$ic %o$icy+ ti# !i$$ not affect te

va$i"ity of te re#t of te arrangement an" te %art of te arrangement

in ue#tion mu#t )e inter%rete" accor"ing$y(

70( ?oint lia#ilities

Te rigt# of any cre"itor !o a# a *oint an" in"ivi"ua$ c$aim again#t a

tir" %arty !i$$ not )e affecte" )y ti# %ro%o#a$(

71 Surplus

A$$ amount# %ai" into te arrangement are inten"e" to )e u#e" to %ay

"ivi"en"# to un#ecure" cre"itor# &after %ayment of te co#t# of te

arrangement'( 8o!ever+ if at te en" of te arrangement u% to F200

remain# in te #ceme+ te Su%ervi#or may coo#e to return ti# to you

a# #ur%$u#(


42


43/48

Summar( Sheet for "ro)osed Indi%idua$ o$untar( !rrangement

8eeting (etails Standard Consumer IVAH +>,-

9ate of meeting Pro%o#a$ "ate

Court (etails Court 6ame Court,- $ined Applicant ull ,ame

Creditors

6ame < -ran" Acct Ty%e Acct Ref -a$ance

Total 'nsecured Creditors Is Propert clause appropriate es>,o +"e$ete a# a

"ffer of pament

A' IVA "uration &mont#' -' ?ont$y contri)ution#

C' IVA Pro%o#a$ Va$ue &A.-'

9' Euity to )e re$ea#e" from%ro%erty

9ate of euity re$ea#e&""


44/48

F'

/easons for financialdifficult


44


45/48

A,,%B E

C$A'S% (%A$I,3 IT) )"8% %='IT + ,%T "/T)-

Items in yellow to amend for particular circumstances

A# can )e #een in A%%en"i. A te %ro%erty at : A99RESS i# *oint$y o!ne" !it myu#)an"

Te incrementa$ co#t of te remortgage+ inc$u"ing co#t of any ne! re%ayment

veic$e+ !i$$ not e.cee" 30= of te mont$y contri)ution at te revie! "ate(

Te net !ort re$ea#e" !i$$ not e.cee" 100% in te F e.c$u"ing #tatutory intere#t(

Te remortgage term "oe# not e.ten" )eyon" te $ater of my State retirement

age or te e.i#ting mortgage term(

Te amount of te money intro"uce" into te arrangement !i$$ )e te mortgage%rocee"# $e## te co#t# of te remortgage+ inc$u"ing any co#t# to re"eem anye.i#ting mortgage an"


46/48

If I am una)$e to o)tain a ne! mortgage+ ti# !i$$ not )e vie!e" a# a fai$ure to com%$y!it te term# of te IVA an" my Su%ervi#or !i$$ ave te "i#cretion to con#i"eracce%ting one of te fo$$o!ing a$ternative %ro%o#a$#7

A tir" %arty #um euiva$ent to 3= of my intere#t in te %ro%erty+ or

12 a""itiona$ mont$y contri)ution# &!it te aggregate #um %ai" to te#u%ervi#or )eing $imite" to 3= of my intere#t in te %ro%erty'(

Protecting creditors interests

To %rotect te intere#t# of cre"itor# my Su%ervi#or !i$$ regi#ter a re#triction again#tte %ro%erty at 8? Lan" Regi#try( To faci$itate ti#+ I !i$$ %rovi"e te Su%ervi#or !it#igne" form RQ1 !itin mont# of te a%%rova$ of te IVA( ai$ure to "o #ofo$$o!ing one mont/# !ritten notice to me from te Su%ervi#or reuiring me toreme"y te "efau$t !i$$ con#titute a )reac( (Also add extra clauses for joint etc).


45


47/48

ILLUSTRATION OF REMORTGAGE CALCULATIONS BASED ON

85% LOAN TO VALUE LTV! AT T"E TIME OF E#UIT$ RELEASE

*e$ease of net worth wi$$ norma$$( ta+e )$a#e 6 months ,efore the anti#i)ated

end of the arrangement- this wou$d norma$$( ,e month 54 un$ess the term of

the arrangement has ,een etended. /or the )ur)ose of this i$$ustration weha%e used month 54.

!" 1

"ro)ert( %a$uation at month 54 200000

utstanding mortgage at month 54 140000

!' "ro)ert( is so$e$(owned

85 of )ro)ert( %a$ue 170000

ess outstanding mortgage &140000'

aimum remortgage for I! 30000

This leaves the debtor with 30,000 (15%) equity and a mortgage of

10,000!

:' ;oint$( owned )ro)ert(


48/48

!" 2

"ro)ert( %a$uation at month 54 200000

utstanding mortgage at month 54 160000

!' So$e$( owned )ro)ert(

85 of )ro)ert( %a$ue 170000

ess outstanding mortgage &160000'

aimum remortgage for I! 10000

This leaves the debtor with 30,000 (15%) equity and a mortgage of

10,000!

:' ;oint$( owned )ro)ert(

uit( ,e$ow

the 5000 deminimis $e%e$ and on that ,asis there wi$$ ,e no e>uit( re$eased

into the I! &un$ess the de,tor is a,$e to get a #ost free mortgage'.

NOTE Te re&ort'('e )* l)&)te+ to ( &(x)&,& o- 85% LTV.

Incre&ent(l co*t o- te re&ort'('e /)ll not excee+ 50% o- te

&ontl1 contr)2,t)on )nto te IVA

Tere /)ll 2e ( c(3 on te tot(l e,)t1 rele(*e to not excee+ 00% o-

te re&()n)n' +e2t

Documents

IVA Protocol 2014 Final