INS10165 - Introduction to Voluntary Arrangements

Full and honest disclosure

Full and honest disclosure means that the proposal should give all prescribed information

• A sworn statement of affairs
• A full list of creditors and their debts including taxes
• Details of connected creditors
• A Statement of comparison of VA with bankruptcy or liquidation

VAS also requires

• a detailed cash flow forecast
• all professional valuations relied upon
• outstanding VAT and PAYE returns

• in IVAs, the debtor’s personal statement of assets and liabilities and projected income and expenditure.

The first step for the debtor in taking proper responsibility for their financial affairs is to be honest about them to both themselves and their creditors

• Compare latest balance sheets and asset expenditure with the statement of affairs
• If you know the position to be different in some respects from that presented in the proposal this casts doubt over the whole package
• Raise discrepancies with the nominee
• If you have concerns about the amount or validity of another creditor’s debt