Insolvency specialist fined for IVA breach

A LANCASHIRE insolvency practitioner has been reprimanded and fined £2,500 plus costs.

Richard Hilton Savage failed to issue a notice of breach until 12 months after being made aware a significant creditor had not been disclosed by a debtor in her IVA proposal. As a result the IVA failed at a subsequent meeting of creditors.

The ICAEW’s Investigation Committee concluded that Savage had rendered himself liable to disciplinary action in respect of a failure to issue a breach notice.

The committee noted that Savage was unable to explain why the notice of breach was not issued in March 2013 and was only issued 12 months later in March 2014, after it was brought to his attention.

The committee noted that until the IVA had been terminated, the creditor was prevented from obtaining an attachment of earnings order against the debtor.

For a delay in progressing an insolvency estate, the Common Sanctions Guidance has a start point of a reprimand and a fine of £2,500. The committee saw no reason to depart from this.