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(Chancery Division, Vos J, 16 November 2011)
H entered into an IVA, which bound the local authority, Merton, as a creditor. As a result of post-IVA litigation, H became further indebted to Merton, which obtained charging orders over a property in H's name. P, who claimed a beneficial interest in that property, appealed against the imposition of the final charging orders, arguing that such proceedings were prevented by the moratorium on proceedings imposed by the IVA. Vos J dismissed the application. Whilst Merton was bound by the IVA as a creditor, the IVA did not cover future debts. The moratorium only applied in respect of debts bound into the IVA.
"This is the ultimate statement of where the law on IVAs is to be found in our great common law...