Case study

Case Study 2

• Solicitors Practice with 2 partners became insolvent.
• Senior partner left the business and sold up leaving the UK leaving junior partner to sort out the finances of the practice.
• Business effectively left with no ability to trade with significant liabilities and no ability to meet existing or ongoing obligations.
• Junior partner proposed IVA which involved closure of partnership and employment in law practice.
• IVA based upon contributions from future income from employment.
• Creditors accepted a nominal dividend due to circumstances of case.
• The debtor continued to pay monthly contributions as the IVA required.
• The debtor’s circumstances changed four years into the IVA that necessitated the IVA being brought to an early conclusion.
• As a result an offer of early settlement was put to creditor which was accepted and the IVA was brought to a conclusion approximately 1 year early.