Tuesday 13th of October 2009
An individual voluntary arrangement (IVA) may have saved a former director of Leeds United from being declared bankrupt.
Property mogul Simon Morris owned SRM Holdings Group - a company with more than 500 houses and flats to its name.
The business was placed under the control of Leeds’s Office of Insolvency in 2008 and was finally declared bankrupt this week.
Mr Morris has now been forced to leave his own company - something an IVA may have been able to prevent.
By taking IVA advice, Mr Morris could have organised repayments on SRM’s £50 million debt so that they were realistic to him.
He may also have been able to avoid bankruptcy and the subsequent banning from his business.
Bankruptcy is made public whereas an IVA is confidential and between only a client, their creditors and a financial expert - this may have been attractive to a public figure such as Mr Morris.
By Mark Waterman
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- Lack of subprime lending creating need for IVA help, expert suggests
- IVA questions may help debt-ridden borrowers
October 13th, 2009 at 7:35 pm
Mr Morris’ IVA was rejected by creditors then one of the creditors petitioned for bankruptcy. In this situation an IVA was obviously not the best option.
October 14th, 2009 at 2:11 pm
IVAs are not confidential. Like bankruptcies they are listed on a publicly available register at http://www.insolvency.gov.uk