INS10703 - IVAs: Part VIII Insolvency Act 1986

Section 253: Application for interim order

Individual debtors may apply for an interim order provided they are either bankrupt or able to present their own petition in bankruptcy (that is, they are insolvent) and they intend to make a proposal to their creditors for

• a composition in satisfaction of their debts, or
• a scheme of arrangement of their affairs (a 'Voluntary Arrangement').

The proposal must provide for a person ('the nominee') to supervise its implementation.

If the applicant is an undischarged bankrupt

• the application may be made by the debtor, trustee or Official Receiver
• the debtor must give prior notice of their proposal to the Official Receiver or trustee.

The application cannot be made

• whilst a debtor's own bankruptcy petition is pending if the Court has already appointed an IP to look into the debtor’s affairs within 12 months of a prior interim order application.

A debtor proposing an IVA without an interim order must meet these same conditions.