Bankruptcy, Individual Voluntary Arrangement and Winding-up of Companies
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5. Case Illustration

Individual Voluntary Arrangement (IVA) Scenario

Miss M borrowed a total sum of $100,000 from 3 financial institutions. She is now unable to repay any of the loans. She does not want to be declared bankrupt because she wants to retain her existing job as an insurance agent. She wishes to apply for an IVA to settle her debts.

  1. What makes an IVA better than bankruptcy in Miss M's case?
  2. What should Miss M do during the IVA application?
  3. What should be stated on Miss M's IVA proposal?
  4. What will happen during the creditors' meeting?
  5. What are the consequences for Miss M if her proposal is approved?
  6. Can the decision made at the creditors' meeting be challenged?
  7. Can Miss M avoid bankruptcy proceedings against her during the effective period of the IVA proposal?