Individual Insolvency - Implications for Forfeiture/CRAR and on Rental Liability

Insolvency Type	Implications for landlord’s ability to forfeit	Implications for landlord’s ability to utilise CRAR	Impact on rental liability
Individual Voluntary Arrangement	No forfeiture permitted after an Interim Order has been made without leave of the Court. Once an IVA is in place the landlord’s rights will depend on the terms of the IVA.	CRAR can only be used for commercial premises and not residential properties. Where an Interim Order has been made then no CRAR will be permitted without leave of the Court. Once the IVA is in place then the landlord’s rights will depend on the terms of the IVA.	This will depend on the terms of the IVA.
Bankruptcy	Forfeiture is possible but the Court can order that any action be stayed.	CRAR is possible but the Court can ‘unwind’ any CRAR that pre-dates the bankruptcy order and the landlord can only exercise CRAR for a maximum of six months’ rent before the bankruptcy order.	The Trustee in Bankruptcy can, in some instances, be liable for the rent but generally the rent will be an unsecured claim. The Trustee can disclaim.