Legality depends on what exactly has been done and how. Moving money / assets around in this way is not uncommon and not, surprisingly, always illegal... morality is a different question. Depending upon what proof you might have you could report the matter to the IP running the IVA in the first ins...

Can anyone help with this question? I know someone who entered an IVA a couple of years ago, deliberately built up debt but hid tens of thousands of pounds in his girlfriends bank account. He had a company that went bust and he was banned from being a director for 7 years, but before then, he set up...