FTVA – Fast Track Voluntary Order to avoid bankruptcy

When entering a Fast Track Voluntary Agreement (FTVA) you are entering an agreement with your creditors to repay your debts after you have been made bankrupt. Bankruptcy is a solution of last resort, so this solution was introduced to avoid it.

Details to bear in mind when entering a FTVA:

• The FTVA document must declare how much you own.
• You will list any assets on your possession that can be sold
• The date when your repayments will be completed
• Fees involved in the administration of the process.

FTVA or Fast Track Voluntary Arrangement Process – How does it Work?

The Official Receiver has the role of a nominee his task will be to make a draft of the FTVA proposal and present it to your creditors. If the proposal is accepted, the Official Receiver will supervise the whole process and will pay your creditors according to the document.

After your creditors accept the FTVA proposal, the Official Receiver will apply to court in order to remove your bankruptcy order. This will usually start after 5 or 7 weeks from the start date of your FTVA. Your bankruptcy will be then removed or annulled and you will be free from its restrictions. Your details will also be removed from the Insolvency Register.

Differences between an IVA and FTVA:

An IVA is used as an alternative to avoid bankruptcy. When entering an FTVA you have already been made bankrupt and want to get out of it. An FTVA will process the sale of your assets and collect regular payments supervised by an Official Receiver. You can also make extra offerings to your creditors when entering an FTVA.

The cost involved in an FTVA?

The Official Receiver will charge you £300 to act as a nominee. This payment is made upfront when setting up the process. If for some reason the Official Receiver can’t act as a nominee the cost will be credited to your bankruptcy estate.

After your creditors agree your proposal, there will be a fee to the Official Receiver of 15% of the total amount collected from your assets and repayments. This amount will also cover for all the administration. However, if your bankruptcy was made against you by your creditors, you will have to repay the cost of their petition. The will also be a fee of £35 for registration of an FTVA with the Secretary of State.