The agency challenged the inclusion in an individual voluntary arrangement of the father’s arrears of child support. The creditors meeting had approved a full and final settlement. 94% of the debts were arrears of child support. The Commission said that such arrears were not subject to the arrangement, and the arrangement was unfair to it.
Held: Child support debts are excluded as a bankruptcy debt, but not for an individual voluntary arrangement, being included within the definition in section 382(4). The statute appeared to include a deliberate choice not to exclude such debts. The Commission might avoid the consequences of it being concluded that such debts were subject to the IVA by attending and voting. It had chosen not to do so.
However, the scheme failed to recognise the particular character of the debt, and the scheme was therefore unfair and was set aside.
Pelling QC J
 EWHC 485 (Ch),  2 FLR 164,  BPIR 552,  Fam Law 579
Child Support Act 1991, Insolvency Act 1986 263(3) 382(4)
England and Wales
Cited – Department of Social Security v Butler CA 1995
The effect of the 1991 Act is that the court has no jurisdiction to grant an injunction to prevent an absent parent from disposing of his assets. A detailed consideration of the 1991 Act shows that it provides a detailed and comprehensive scheme and . .
Cited – in Re Bradley-Hole (A Bankrupt) ChD 1995
There was a conflict between the creditors who were party to the IVA and a subsequent trustee in bankruptcy; and the bankruptcy was petitioned by a new creditor who was unaffected by the IVA.
Held: The IVA had created a trust of the bankrupt’s . .
Cited – Kehoe, Regina (on the Application of) v Secretary of State for Work and Pensions HL 14-Jul-2005
The applicant contended that the 1991 Act infringed her human rights in denying her access to court to obtain maintenance for her children.
Held: The applicant had no substantive right to take part in the enforcement process in domestic law . .
Applied – Re A Debtor (No.488 IO of 1996), JP v A Debtor ChD 1999
The debtor had been ordered to pay his wife a sum by way of ancillary relief in matrimonial proceedings. He then proposed an IVA, which was approved at a creditors meeting. W had notice but did not attend. She along with all other creditors was to . .
Lists of cited by and citing cases may be incomplete.
Child Support, Insolvency
Updated: 10 November 2021; Ref: scu.402599