Fast Track Voluntary Agreements
A Fast Track Voluntary Arrangements is for someone already made bankrupt with the purpose that the FTVA replaces and annuls the bankruptcy order.
Fast Track Individual Voluntary Arrangements (FTVA) are for people who:-
- Have been made bankrupt by a creditor, but are seeking to, and can afford to, pay their way out of the bankruptcy.
- Petitioned for their own bankrupty, but have now realised they have not acted upon the proper advice and this was not the most appropriate course of action for them.
An application for a FTVA will only be accepted if your creditors stand to gain more of the money owned to them over the bankruptcy order.
The Official Receiver acts as would the Nominee in a normal IVA. For this they are paid £300+ 15% of the money obtained via the FTVA.
The Bankruptee pays the Official Receiver £300 + a £35 registration fee when submitting a ‘Proposal to creditors for a Fast Track Voluntary Arrangements in satisfaction of debts‘ form.
Like a normal IVA, a repayment offer is made to the creditors in either a full and final payment or over a 5 year period if payments from income are to be made, or a combination of both. Creditors are advised by post, who either accept or reject the proposal. There is no creditors meeting.
Like a normal IVA, If the proposal is accepted, the Official Receiver becomes the supervisor of the FTVA and informs the court. The court annuls the bankruptcy automatically. The official receiver will advise anyone notified of the bankruptcy order that you are no longer bankrupt.
Details of your bankruptcy will be removed from the individual insolvency register. It will be as the bankrupty never existed.