IVA - Creditor trying the overturn

dotto61

Trying to overturn or suspend.
I need advice - can an IVA be suspended or overturned on an irregularity in the original paperwork, not a lie just a possible clerical error.
Do we need seperate legal advice?

National_Debtline

Hi dotto61 and welcome to the forum.


Section 263 of the Insolvency Act allows creditors to apply to court to "reverse or modify any act of the supervisor".


This is a very broad power, and in theory allows them to seek the cancellation of the IVA altogether if they have legitimate grounds for doing so, and it is in their best interests. In most cases, I would expect creditors to be applying to "modify" the arrangement to their advantage, as opposed to annulling it completely.


You can be deemed to have committed an offence under Section 262A of the same Act if you have either:


"made any false representation" or


"fraudulently done, or omitted to do anything".


I understand that the problem here was simply one of clerical error. However if it becomes at all likely that you will be accused of either of the above offences, then you should definitely seek legal advice.


Dennis
@natdebtline