7. Can Miss M avoid bankruptcy proceedings against her during the effective period of the IVA proposal?

7. Can Miss M avoid bankruptcy proceedings against her during the effective period of the IVA proposal?

Miss M can avoid bankruptcy proceedings if she complies with her obligations under the IVA.

Under section 20L of the Bankruptcy Ordinance, however, the Court can still make a bankruptcy order against the debtor if:

• the debtor has failed to comply with the relevant obligations under the IVA; or
• the debtor provided false or misleading information or omitted items that were important for considering and approving the IVA proposal; or
• the debtor failed to do all such things for the purpose of the IVA that have been reasonably required by the Nominee of the voluntary arrangement.