separate arrangement for non-voting creditors?

[bmystic]

Hi i my iva was successful but not all my creditors voted do i need to sort out a separate arrangement for the ones that did not vote

[MelanieGiles]

Hi bmystic and welcome to the forum

No - the creditors who have not voted are bound by the decisions of those that did. They had their chance to influence the vote and chose to abstain, and that is now a matter of fact.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Adam Davies]

Hi
This is one of the plus sides of an IVA,as long as you include all your unsecured creditors in your proposal and it is accepted by 75% of your creditors,by value,that actually vote on the day then all creditors are bound by the IVA,even if they voted no or did not vote at all.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[iva_squirrel]

Good evening,

For an IVA to be approved all that is required is greater that 75% of the voting creditors to accept your arrangement and it will be binding on all your creditors.

For an IVA to be approved, your creditors will be asked to vote "for" or "against" the arrangement. It only requires one creditor to vote "for" the IVA, for the IVA to be approved. However, should only one creditor vote, and they vote against your IVA, and they represent less than 25% of your total debt, the meeting will be rescheduled for a later date and your other creditors, who failed to vote will be called upon to vote again.

If the creditor who voted against the IVA represents more than 25% of your total debts your IVA application will fail. This is because an IVA can only ever be approved if 75% of the monetary value is voted for. If any of your creditors don't vote, it is assumed that they would vote “for” the IVA.

The rules of an IVA state that - providing 75% (in true value terms) of creditors that have voted, have voted to accept the IVA proposals (with or without modifications) then the IVA is agreed and becomes legally binding on all other parties even if they have not voted.

Kind regards,

Julia Simavi

Shortlisted with special commendation for Debt Counsellor of the Year by Credit Today Awards 2007

View my profile:
http://www.supersonicsquirrel.net/julia ... rofile.asp

Visit my website:
http://www.supersonicsquirrel.net

Credit Today Awards 2007 http://www.credittoday.co.uk/awards/winners.htm