Horizon Convictions Redress Scheme (HCRS): how a bankruptcy, Individual Voluntary Arrangement (IVA) or Debt Relief Order (DRO) affects your redress payment
Published 1 November 2024
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Bankruptcy
Whether the creditors in your bankruptcy have a claim to any of your redress payment under the HCRS depends on insolvency law.
It depends on the dates of your bankruptcy and the date your conviction was quashed:
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if your conviction was in England, Wales or Northern Ireland, it was quashed on the 24 May 2024
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if your conviction was in Scotland, it was quashed on 14 June 2024
If you were bankrupt and your bankruptcy has been discharged before the date your conviction was quashed, then creditors will have no claim to your redress payment.
This means we can pay the redress payment directly to you and no amount of it will be paid into your bankruptcy to cover debts. In these circumstances, we will ask the trustee in bankruptcy to submit a waiver which confirms they will not take any of your redress for creditors before making a payment to you.
Creditors will have a claim to the financial damages elements of your redress payment if you:
- were bankrupt and your bankruptcy was not discharged before the date your conviction was quashed
- have been made bankrupt after the date your conviction was quashed
Read guidance on what the financial damages elements are in the HCRS assessment framework.
Individual Voluntary Arrangements (IVAs)
If you entered into an Individual Voluntary Arrangement (IVA), then the specific terms of the IVA proposal will determine whether your IVA supervisor has a claim to any of your redress payment.
Your lawyer should review your IVA proposal and advise you whether your redress payment is an asset which is due to be paid to your supervisor.
Debt Relief Orders
A Debt Relief Order (DRO) is only available to debtors with total assets worth less than £2,000. Your redress payment will take you over this limit and would likely lead to a DRO being revoked.