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 assets for the benefit of the IVA creditors. The bankruptcy order did not terminate the IVA, and the bankrupt retained no interest in the assets subject to the IVA, and therefore those assets did not vest in the trustee and the trust continued notwithstanding the bankruptcy. An argument based on section 276(2) that the trust ended on the making of the bankruptcy order was not accepted.The IVA constituted the supervisor as trustee of all the bankrupt’s assets that were the subject of the voluntary arrangement.
Judges:
Rimer J
Citations:
[1995] 1 WLR 1097, [1995] 4 All ER 865
Statutes:
Jurisdiction:
England and Wales
Cited by:
Cited – Child Maintenance and Enforcement Commission v Beesley and Another ChD 11-Mar-2010
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 . .
Lists of cited by and citing cases may be incomplete.
Insolvency
Updated: 27 September 2022; Ref: scu.402615