As noted above a personal insolvency arrangement will not come into effect unless it is approved at a creditors meeting (unless there is just one creditor, where that creditor can serve a notice instead).
Section 115A(9)(g) of the 2012 Act provides that a court cannot make an order under section 115A unless either:
- at least one class of creditors has accepted the proposed Arrangement, by a majority of over 50 per cent of the value of the debts owed to the class.
- there is just one creditor
If you receive an application for legal aid, ask for a copy of the results of the creditors meeting.
If this criteria is not met the application (to the court) cannot be granted. This being the case the decision maker may form a view that legal aid should be refused under sections 24 and 28(2)(b), (c), and (e).