Green (Supervisor of the IVA of Wright) v Wright

Green (Supervisor of the IVA of Wright) v Wright

Completion of the IVA and issue of a certificate of completion does not terminate the trust constituted by paragraph 28 of the Conditions. The property subject to the IVA continues to be held on trust for creditors, and debts continue to exist for the purposes of defining creditor rights under those trusts. There is no express provision terminating the trust upon completion, and the purpose of the IVA is to apply the debtor's property in or towards payment of the debts.

Parties
Appellant: James Green; Respondent: James Patrick Wright
Jurisdiction
England and Wales
Judgment Date
01 March 2017
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal allowed
Legal Topics
Individual Voluntary Arrangement (iva), Trusts of Arrangement Assets, Completion and Termination of IVA, Creditor Rights, Release of Debts
Insolvency Trusts Individual Voluntary Arrangement (iva) Trusts of Arrangement Assets Completion and Termination of IVA Creditor Rights Release of Debts

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 6 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

James Green

Appellant

James Patrick Wright

Respondent

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Does a trust in favour of creditors constituted by an IVA survive the issue of a certificate of completion, so that property subject to the trust but discovered after completion remains subject to the trust?

Ratio Decidendi

Completion of the IVA and issue of a certificate of completion does not terminate the trust constituted by paragraph 28 of the Conditions. The property subject to the IVA continues to be held on trust for creditors, and debts continue to exist for the purposes of defining creditor rights under those trusts. There is no express provision terminating the trust upon completion, and the purpose of the IVA is to apply the debtor's property in or towards payment of the debts.

Court Disposition

Appeal allowed

Orders

  • The sums received in settlement of PPI claims remain subject to the trust constituted by the IVA.
  • The supervisor is entitled to distribute the proceeds among creditors in accordance with the IVA.