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(Chancery Division, Norris J, 15 December 2011)
Shortly before the creditors' meeting to consider Y's Individual Voluntary Arrangement (IVA) proposal, his wife submitted a large debt claim allegedly based on a consent order in matrimonial proceedings, which had culminated in her interest in a property being used to discharge debts due from the debtor to his first wife. The chairman allowed the vote, but marked it as objected to, which meant that the IVA was approved. The bank's appeal was dismissed by the deputy registrar. Norris J allowed the appeal, on the basis that the wife's evidence was such that the value of her debt was substantially lower. The IVA was set aside and no further meeting was ordered, with the effect that the bank was entitled to proceed with a bankruptcy petition against the debtor.
"This is the ultimate statement of where the law on IVAs is to be found in our great common law...