INS10209 - Steps a debtor takes

Interim Order (IVA)

An interim order can only relate to an IVA.

A debtor needing protection from creditors whilst a proposal is being prepared applies to the Court under Section 253 IA1986 ( INS10703) for an interim order (a short-term stay which prevents any creditor from taking recovery action against the debtor).

The period of the interim order is not specified. It is at the Court's discretion and capable of limited extension.

No one is entitled to more than one interim order in any 12-month period without leave of the Court.

Notice of the application has to be given to various parties (such as a petitioning creditor). The time limit for the notice of hearing is two days. (Rule 5.5 (4) Insolvency Rules 1986).

An interim order cannot be obtained while a petition by the debtor is pending and the Court has appointed an IP to make a report. Since January 2003 it has not been essential to obtain a prior Interim Order.

The nominee must report their initial findings back to Court. If the nominee's report concludes that a meeting should be called the Court will usually endorse that conclusion.

If the Court considers that a meeting of creditors is not appropriate, or the debtor fails to comply with their obligations, the Court may discharge the interim order.

An interim order cannot cease have effect at less than two days notice. Rule 5.10(1) Insolvency Rules 1986 applies ( INS10750).