Annual reports in post April 2010 IVAs

Whilst it will still be another 5 months before you will have to prepare your first annual report for an IVA commenced under the new rules I still thought that this would be an opportune time to remind you about a change introduced by rule 5.31A(4). When reporting to creditors on the progress of the IVA for cases commenced on or after 6 April 2010 you now also have to report on the prospects for the full implementation of the arrangement. Before preparing an annual report you will need to check to see if the debtor is fully complying with their obligations under the arrangement, or if there will be a reduction in the anticipated level of dividend for creditors for any reason. If the debtor is not complying or there is a reduction in dividend then you will need to ensure that you comment accordingly. Where there will be a reduction in dividend then ideally you should provide creditors with a revised outcome statement.