if an IVA fails what happens then ?

[vicki.m]

if an IVA fails- one of the creditors will not agree to it what happens then ?

[Viki.W]

Hey Vicki, do you mean at your creditors meeting? You have the option of a debt management plan or bankruptcy which your IP should have discussed with you. If you want to post a few details we can try and advise you further. X

[Cybus]

Not all of your creditors need to agree to the arrangement for it to be approved.
You will require a 75% majority in value of those creditors voting on the day. You may have say £40,000 worth of unsecured debt in total. If only £20,000 worth of those vote on the day and 75% of that £20,000 vote to approve the arrangement then not only are the £20,000 woth of creditors who voted for the arrangement are bound by it, those who did not vote at all are also bound by the terms.

If an arrangement is rejected then there are a number of options available to you, including those mentioned above. If you have got as far as a creditors meeting being convened, all of those options should have been made clear to you and their respective advantages and disadvantages explained. If that is not the case then you should consider taking a second opinion as the people you are dealing with are not carrying out their duties properly.

[Viki.W]

Sorry Vicki, I forgot to mention the 75% thing, ignore me!

[petervr6]

sorry to but in on this thread, but when you say 75%, do you mean the lender who has given 75% of the total money? the reason i ask is that i have issues with 3 creditors and i thought that would mean that all 3 would have to say yes because if only 2 vote it is then only 66%? does that make sence?

[MelanieGiles]

The votes are based on the value of what you owe to creditors on an aggregate basis, and not the number of creditors.

[petervr6]

thanks, i understand now!

[Adam Davies]

Hi
It is possible to owe 100k with several creditors and for only one to bother voting on the day,even if this creditor is only owed a few hundred pounds the IVA would be agreed and legally binding for all
You need a yes vote from creditors who are owed 75% or more of the total debt belonging to all the creditors that actually vote on the day.
Regards

[look_divine]

so in theory if if all the creditors didnt vote then the iva would still go ahead?
has this ever happened when no creditors have voted?

[Viki.W]

Look Devine, if no creditors voted then no the IVA would not be accepted as you need the 75%. X

[look_divine]

ah right thanks xxx