Fast-track Voluntary Arrangements – What You Need To Know

Fast-track Voluntary Arrangements
In the event of bankruptcy, all hope still isn’t lost. A way out of the problem would be to apply for a Fast-track voluntary arrangement (FTVA). This FTVA works to invalidate the bankruptcy and provide a solution for your debt repayment. But what is this FTVA? Fast-track voluntary arrangement is an obligatorily agreement between a debtor and creditors with the view to reimburse all or part of monies owed. But the prerequisite for applying for the FTVA is that you must have been declared bankrupt.
What is the process of obtaining a Fast-track Voluntary Arrangement?
The process of obtaining a Fast-track voluntary arrangement stipulates that your application must be passed through the Official Receiver who happens to be an officer from the bankruptcy court. However, there’s still the issue of having your creditors agree to play along with the arrangement. If they eventually do accept, then the official receiver is empowered to be in charge of all your property which is required to be used to settle the outstanding debt. But the conditions bordering around obtaining this FTVA include the fact that your creditors MUST agree to this arrangement and this will only be possible if they are sure that they will receive more money from the FTVA than they would have received from the bankruptcy.
After the official receiver has been nominated, it then becomes the responsibility of the official receiver to go to court to revoke all bankruptcy claims which have been filed in your name. In addition notifications would be sent out to all quarters where your bankruptcy had been previously registered to notify all necessary parties of the changes and annulment of the bankruptcy. Finally, all previously seized properties/assets on account of the bankruptcy claim (not pertaining to your present debt) would be reclaimed.
The actual process of applying for the FTVA involves contacting the official receiver at the bankruptcy court and collecting your forms to fill. These forms should contain the same information that you provided during your bankruptcy proceedings.

Other information needed on the application include: a declaration of all your assets, the window period you wish to use to make the payment, the intended debt amount and how much you wish to pay then all FTVA fees. These FTVA fees include: registration fees (£35) which will accompany your application form, the official receiver’s own fee which is about 15 percent of your total assets which is supposed to be used to cover for the debt payment and a fixed £300 rate which the official receiver will get for standing in as your nominee.

How to apply for a Fast-track Voluntary Arrangement
If you intend to take benefits of Fast-track Voluntary Arrangement, you must know the application procedure for the same. The first thing you need to do is to contact a member of the Official Receivers staff. You will be given a set of forms to fill in. Here, you will have to fill-in the details that you have already told to the Official Receiver during your bankruptcy process. These forms with all details therein will be considered as your proposal for Fast-track Voluntary Arrangement.
The following information you will have to provide in order to make your proposal:
The amount that you are willing to pay
The period of time you will need to pay that amount
Details of assets you possess, if any
A detail of your all debts
Cost involved in Fast-track Voluntary Arrangement
What to do after obtaining a Fast-track Voluntary Arrangement

In all these, it must also be pointed out that you also have a major role to play in the proceedings. It’s not enough to say that the courts have taken over so then it’s time to go on a vacation…by all means no! Rather, it then becomes your sole responsibility to ensure that these proceedings follow through. The role you have to play to aid in the FTVA would be to ensure that all payments come in as at when due without any defaulting. Also, you are required to co operate with the FTVA staff and surrender any nominated asset required to facilitate the process.
It is also necessary to intimate you on the consequences of not following through with your regular payments. The FTVA could cancel your application and you would fall back into the same bankruptcy position with even the possibility of more stringent actions being meted against you!

Post a comment