Last updated: 23/07/2020 | Estimated Reading Time: 2 minutes
Fast track voluntary arrangements
Fast track voluntary arrangements are available to anybody who is going through bankruptcy proceedings or have recently been declared bankrupt. These FTVAs work in much the same way as normal individual voluntary arrangements in that they allow you to lengthen the terms of your loan and reduce your monthly repayments.
This guide will talk you through everything that you need to know about how to set up a fast track voluntary arrangement.
In This Guide:
Fast track voluntary arrangements - what are they?
Fast track voluntary arrangements are similar to individual voluntary arrangements but, as the name suggests, they are set up over a much shorter period of time. They are intended for people who are on the verge of bankruptcy and want to find a different solution to their debt problems. In order to be eligible for a FTVA you must either have already been declared bankrupt or be going through formal bankruptcy proceedings.
In order to attain a fast track voluntary arrangement you must send a formal letter of application to the courts and your lenders.
Once you have done this, they will decide upon whether or not to accept your application. If they decide to accept your application, they will then be bound to the terms of your agreement for the rest of your FTVA's period.
You will need to get in touch with the Official Receiver in order to set up a FTVA. Your Official Receiver will act as a correspondent between you and the courts and will oversee the in and outs of the setting up process. If you would like any more details on FTVAs then have a look at the Insolvency Service's online leaflet about them at www.bis.gov.uk.
Benefits of FTVAs
FTVAs are often the last viable option before declaring yourself bankrupt and starting official proceedings with the courts. One reason that many people would rather opt for an FTVA is the fact that they allow you to retain sovereignty over your possessions; including your house and other valuable assets. Your creditor may also allow you to take out a fast track voluntary arrangement because forcing you into bankruptcy may cause you to lose your job. This is because many companies have a policy that requires them to terminate the employment of anybody in this position.
In spite of all this, you should be aware that setting up an FTVA will almost always mean that you end up paying more than you would if you were to declare bankruptcy.