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Section 316 of Insolvency Act CAP 53: Expedited voluntary arrangement procedure: availability

    

(1) This section applies if a debtor intends to make a proposal to the debtor's creditors for a voluntary arrangement and—
(a) the debtor is an undischarged bankrupt;
(b) the Official Receiver is specified in the proposal as the provisional supervisor in relation to the proposal; and
(c) no application for an interim order has been made under section 304.
(2) If this section applies, the debtor may submit to the Official Receiver—
(a) a document setting out the terms of the debtor's proposal; and (b) a statement of the debtor's financial affairs containing—
(i) such particulars as may be prescribed by the insolvency regulations for the purposes of this section of the debtor's creditors, debts, other liabilities and assets; and (ii) such other information as may be so prescribed.
(3) If satisfied that the proposal has a reasonable prospect of being approved and implemented, the Official Receiver may make arrangements for the purpose of inviting creditors to decide whether to approve it.
(4) For the purposes of subsection (3), a person is a creditor only if—
(a) the person is a creditor of the debtor in respect of a bankruptcy debt; and
(b) the Official Receiver is aware of the person's claim and the person's address.
(5) In making arrangements under subsection (3), the Official Receiver shall ensure that—
(a) each creditor is provided with a copy of the debtor's proposal;
(b) each creditor is provided with information about the criteria by reference to which the Official Receiver will determine whether the creditors approve or reject that proposal; and (c) no opportunity is allowed for modifications to that proposal to be suggested or made.
(6) If a debtor submits documents to the Official Receiver in accordance with subsection (2), an application under section 304 for an interim order may not be made in respect of the debtor unless the Official Receiver—
(a) has made the arrangements referred to in subsection (3); or
(b) has informed the debtor that the Official Receiver does not intend to make such arrangements (either because the Official Receiver is not satisfied that the proposal has a reasonable prospect of being approved and implemented or for any other reason).
(7) If a meeting of creditors is convened for the purpose of subsection (3), the provisions of section 310 apply to the holding and conduct of the meeting.

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Disclaimer: This document is not to be taken as legal advise.

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