Source: All England Reporter
Publisher Citation: [2002] All ER (D) 363 (Oct)
Court: Court of Appeal, Civil Division
Judge:

Aldous and Dyson LJJ

Representation Tim Hirst (instructed by Messengers, Scarborough) for the claimant.
  Ian Holtum (instructed by James Chapman & Co, Manchester) for the defendant.
Judgment Dates: 24 October 2002

Catchwords

Bankruptcy and insolvency - Individual voluntary arrangement - No presumption against construing an individual voluntary arrangement as creating a trust - Debtor claiming that individual voluntary arrangement normally creating not trust but contract between debtor and creditors.

The Case

There was no presumption against construing an individual voluntary arrangement (IVA) as creating a trust. The courts should be slow to find that a trust had not been created by an IVA. The same policy considerations which applied to company voluntary arrangements and favoured construing them as trusts also applied to IVAs: if IVAs were not so construed, creditors would have less incentive to enter into them.

Practice Areas

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