Fast track voluntary arrangements
If you are in the middle of bankruptcy proceedings or have just been made bankrupt, you can decide to get a Fast-Track Voluntary Arrangement (FTVA) instead and your bankruptcy will be cancelled.
An FTVA is a formal and legally-binding agreement between you and your creditors to pay back your debts over a period of time.
This page tells you about FTVAs and what you should do if you want to get one.
What is an FTVA?
If you have just been made bankrupt but want the bankruptcy cancelled, you could apply for a Fast-Track Voluntary Arrangement (FTVA). An FTVA is a type of Individual Voluntary Arrangement (IVA). It is a formal, legal debt solution which involves paying off your debts in part over a period of time. It is approved by the court and your creditors have to stick to it.
An FTVA must be set up by the Official Receiver. If you decide you want to apply for a FTVA, you should contact the Official Receiver. Once the FTVA is made the bankruptcy order is cancelled.
More about FTVAs can be found in the Department of Enterprise, Trade and Investment’s leaflet ‘What to do if you are bankrupt and wish to enter into a fast-track voluntary arrangement (FTVA)’ at www.detini.gov.uk .
Why choose an FTVA after bankruptcy?
You might want to do this to avoid the negative impacts of bankruptcy, for example, if:
- you own a home or other property and don't want to sell it
- bankruptcy would mean that you might lose your job.
Your creditors will only agree to an FTVA as opposed to bankruptcy if it is a better deal for them. This means paying more money to the creditors than you would in bankruptcy.