Fast Track Voluntary Arrangement

A Fast Track Voluntary Arrangement (FTVA) is a binding agreement between you and your creditors to pay all or part of the money you owe them. You can only apply for a FTVA during bankruptcy. An Official Receiver will act as your nominee and contact your creditors and make proposals of repayment on your behalf. If the proposals are accepted by at least 75% of the debt represented by the creditors, the FTVA will be approved and your OR will apply to make your bankruptcy order Annulled (void).

How to apply for a Fast Track IVA

If you decide you want to apply for a FTVA, you need to contact a member of the Official Receivers staff. Forms will be sent out for you to fill in. This will include details you have already informed the Official Receiver about during your bankruptcy process. These forms will act as your proposals.

Information required in order to make an application will be:

The costs involved are as follows:

If the Official Receiver declines to act as nominee, then any costs paid will be placed into your bankruptcy estate. If the Official Receiver agrees to act as nominee, he/she will contact your creditors with your proposals and your creditors will make a vote. If the FTVA is accepted, then this will be legally binding and none of your creditors will be able to take any legal action against your regarding the debt you owe as long as the agreements are kept to.

If you do not keep to the agreements, your FTVA will fail and your Official Receiver will make you bankrupt again. If the agreements could not be kept to because of circumstance out of your control, i.e. redundancy, the FTVA will fail, however, the OR will take no more action against you. Creditors, however, will be able to take legal action against you including petitioning for bankruptcy.

How Long does a FTVA last?

There is no fixed time period for a FTVA. You will set out the time period along with the proposals of repayment you make. The time period will depend on your individual circumstances, for example, if you have been given a lump sum by a third party to pay off your debt or part of your debt, and the proposal is accepted, the FTVA will end once your supervisor has distributed payments to your creditors.

You must remember to declare everything. If you fail to do so, this will be classed as fraud, which is a criminal offence.

For immediate and free debt advice please call Payplan free on 0800 280 2816 or use our Debt Help Form to submit your debt problem online.

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