Fast Track Voluntary Arrangements

Fast Track Voluntary Arrangements may seem daunting and complicated, however National Debt Advice can arrange the whole procedure and allow you to rest assured that you have minimal stress throughout.

What is a Fast Track Voluntary Arrangement (FTVA)?

Even if you have been made bankrupt it is still possible to have a special form of IVA called a ‘Fast-Track Voluntary Arrangement’ (FTVA). If you get a FTVA it means your bankruptcy order can be reversed. You put forward a payment proposal to your creditors through your official receiver that would mean they will be paid more than they would under your bankruptcy.

The official receiver runs the FTVA for you if it is set up. The FTVA is cheaper than an ordinary IVA as there are set fees and costs. If it fails, then your creditors could try to make you bankrupt again.

  • An FTVA is a binding agreement with your creditors to pay part or all of the money you owe them.
  • An FTVA is a type of Individual Voluntary Arrangement (IVA) that anyone who becomes insolvent can use to deal with the debts they have left to pay.
  • An FTVA effectively removes the bankruptcy from the records.
  • An FTVA is normally cheaper than an Individual Voluntary Arrangement (IVA), as FTVAs have set costs.

FTVA’s are usually only suitable for simple asset cases, i.e. non-traders. It is necessary to put forward a payment offer to the creditors, of more than they would get under a standard bankruptcy order. The Official Receiver runs the FTVA for the individual if they agree with the proposal.

To begin the FTVA process, you must draw up a proposal to your creditors to ensure all your debts are covered. The proposal must contain:

  • The duration that the payments will be made.
  • Details of your debts and with whom they are held.
  • The assets you have available to be sold.
  • The payments you are able to make to your creditors.
  • A breakdown of the cost of managing the FTVA.

If your proposal is accepted by the creditors, the Official Receiver then acts as your supervisor, and looks after your payments to your creditors in agreement with the proposal. If your creditors accept your proposal, then the arrangement is compulsory and prevents them taking legal action against you to impose their debts.

You can only enter into an FTVA if you have been made bankrupt. The procedure is designed to deal with straightforward sales of assets and the collection of regular payments. So if you have a lot of assets to be sold, an FTVA will not be the best solution for you.

If you fail to meet what you have proposed to your creditors or if you do not keep up the payments which you agreed, your FTVA will fail. If you deliberately fail to keep to the terms of the agreement, but are still able to make payments, the Official Receiver will make you bankrupt.

If the failure is not your fault, for example because you have been made redundant, the FTVA will be terminated, and take no further action. However, your creditors will still be able to recover the full amount you owe them, which will mean petitioning for your bankruptcy.

The duration of an FTVA is determined in each individual proposal, there is not just one set time frame, for example, and your proposal may be based on receiving a lump sum or the sale of assets in the future.

National Debt Advice uses trained advisors to give advice on Fast Track Voluntary Arrangements and recommend the most appropriate action for your needs – whether that is an FTVA or another solution. For more free advice on FTVA’s or any other debt related issues, please take a few seconds to fill out the simple enquiry form on this page.

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