CFL Finance Ltd v Bass & Ors (Good faith to voluntary arrangements : consumer credit law)

CFL Finance Ltd v Bass & Ors (Good faith to voluntary arrangements : consumer credit law)

The CFL debt is enforceable and not impugned by the Consumer Credit Act or penalty doctrine; the application for adjournment to convene a meeting for a second IVA is refused due to the unfairness of collateral arrangements benefiting the largest creditor, lack of independence of Laser Trust, and the de minimis return to other creditors. The bankruptcy petition proceeds.

Parties
Applicant/petitioner: CFL Finance Limited; Respondent: Jonathan Bass; Respondent: Freddy Khalastchi; Respondent: Moises Gertner; Opposing Creditor: Laser Trust
Jurisdiction
England and Wales
Judgment Date
15 July 2019
Procedural Posture
Bankruptcy Petition / Final Hearing and Disposition
Outcome
Application for adjournment refused; bankruptcy order granted.
Legal Topics
Bankruptcy, Individual Voluntary Arrangement (iva), Consumer Credit Act, Compromise Agreements, Good Faith Principle, Penalty Clauses
Insolvency Contract Law Bankruptcy Individual Voluntary Arrangement (iva) Consumer Credit Act Compromise Agreements Good Faith Principle Penalty Clauses

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Parties

CFL Finance Limited

Applicant/petitioner

Jonathan Bass

Respondent

Freddy Khalastchi

Respondent

Moises Gertner

Respondent

Laser Trust

Opposing Creditor

Procedural Posture

Bankruptcy Petition / Final Hearing and Disposition

Legal Issues

  1. 1 Whether the debt claimed by CFL Finance Limited is enforceable under the Consumer Credit Act and/or constitutes a penalty
  2. 2 Whether the applicant is entitled to a bankruptcy order
  3. 3 Whether the opposing creditor (Laser Trust) is entitled to an adjournment to convene a meeting for an Individual Voluntary Arrangement

Ratio Decidendi

The CFL debt is enforceable and not impugned by the Consumer Credit Act or penalty doctrine; the application for adjournment to convene a meeting for a second IVA is refused due to the unfairness of collateral arrangements benefiting the largest creditor, lack of independence of Laser Trust, and the de minimis return to other creditors. The bankruptcy petition proceeds.

Court Disposition

Application for adjournment refused; bankruptcy order granted.

Orders

  • Refusal of adjournment to convene a creditors' meeting for an Individual Voluntary Arrangement.
  • Bankruptcy order made on the petition presented by CFL Finance Limited.