I’ve received a ‘Notice of Breach’ – what does this mean?
You will be deemed in breach of the IVA if you fail to comply with any of the obligations set out in your proposal. A ‘Notice of Breach’ is issued to you when at any time it appears that a breach has occurred. This notice is sent only to you and outlines the details of the breach.
You will normally be given one month to provide a proposal to remedy the breach and to provide a full explanation why the breach has occurred before the supervisor takes any further action.
If, within the one month period, you are able to remedy the breach or provide an explanation for the breach then it may be possible to continue the IVA or seek to vary its terms so that the issue is resolved.
A failure to respond to the notice within the one-month period will result in the failure of the arrangement. The Supervisor of your IVA will then would issue a Certificate of Termination and may need to present a petition for your bankruptcy.
