Sometimes, when applying for an Individual Voluntary Arrangement (IVA), an Interim Order is used. It is a legal device available to an Insolvency Practitioner to stop creditors taking legal action against a debtor (charging orders on property for instance) while proposals are put together to get the IVA approved.
Up to 2006 Interim Orders had to be applied for in nearly every IVA case as a matter of routine. However the time consuming requirement for an Interim Order has now diminished to the point where they are not normally required. The major exception to this is where there are aggressive creditors taking legal action up to and including a bankruptcy petition. Where a debtor, usually on the advice of his Insolvency Practitioner, believes that such a creditor petition is not in the best interests of all the creditors then an Interim Order request can be presented to the Court to formally stop all action for a specific period of time.
The Court must be satisfied that the debtor :-
(S255 Part VIII Insolvency Act 1986)
Interim Orders are usually designed to last for a period of 14 to 49 days so an Insolvency Practitioner and debtor need to work very quickly to get IVA proposals before the Court (in an attempt to get a bankruptcy annulled) or to all creditors to gain overall approval for the IVA.
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Total unsecured debt : £4000