Section 142: Exclusion from individual voluntary arrangements
707.An individual voluntary arrangement (IVA) is a legally binding arrangement supervised by a Licensed Insolvency Practitioner, the purpose of which is to enable an individual, sole trader or partner to reach a compromise with his creditors and avoid the consequences of bankruptcy.
708.Section 142(1) amends section 382 of the Insolvency Act 1986 (“bankruptcy debt etc.”), to make it clear that a liability under the Child Support Act 1991 to pay child support maintenance is not a debt or liability which can be included in an IVA. Thus a non-resident parent who owes arrears of child support maintenance will not be able to reduce his liability by means of an IVA.
709.Subsection (2) amends the heading to section 382 of the Insolvency act 1986 to more accurately reflect the content of the section after the amendment in subsection (1).
710.This measure will not apply in Scotland, as the Insolvency Act 1986 applies only to England and Wales.
