Mr Williams raises a query. He had recently been elected as a parent governor at his child’s school and had attended two governing body meetings as well as induction training offered by the Local Authority. He was very much enjoying the new role. This past week, he entered into an Individual Voluntary Arrangement (IVA) with some creditors. An IVA is a formal alternative for individuals wishing to avoid bankruptcy. He was aware that he could no longer be a governor if he was declared bankrupt but was unsure about his position now he had an IVA.
An IVA is essentially a legally binding contract between a debtor and their creditors. It allows an individual to settle a debt within a reasonable and fixed period of time, usually five years, according to a contract and is an alternative to bankruptcy. It allows a debtor:
Regulation 6 of Schedule 5 of The Government of Maintained Schools (Wales) regulations 2005 states that
The issue is therefore whether the IVA amounts to “a composition or arrangement with … his or her creditors”.
This statement is wide enough to cover IVA and therefore prevents him from continuing as a governor until it is discharged.