www.iva.co.uk

Hi. i have about 20K unsecured debt and its getting harder and harder to pay. i try and pay something each month but the letters and calls keep coming no matter how much i explain that i am doing the best i can. i am seriously thinking of going the IVA route because my nerves cant take much more.

i am confused as to what happens if all the creditors dont agree. Say i have 8 creditors and only 3 agree. Does that mean i do not get the IVA or do they not have any choice in the matter and have to accept the arrangement? one of my larger debts is a bank loan of approx 9k and a credit card of £3500 with the same bank - i am scared they dont accept the IVA and drag me to court.

Hi and welcome to the forum. If one of the creditors agrees and they are the largest debt then the others are bound to it regardless of whether or not they agree. It is simply down to percentages who has the highest and if they say yes!!!

Might be a silly question but what happens if none of them want to agree to the IVA? Has this type of thing happened before where they have refused?

IVA's are ultimately the decision of the creditors as to whether they will agree to them or not, however an IP will work to make the proposal as attractive as possible to try and smooth the way. For example, a return of 40p in the pound over 5 years as opposed to a lesser return in the case of bankruptcy so scenarios where everybody would vote no are rare. There are other factors to consider of course, so perhaps your best bet may be to go to www.iva.com and have a look round at the various providers, read a couple of reviews etc.
I would encourage you to speak to 2 or 3 providers before you make a decision.

Regards.

I was asking the same at the start of mine, and was told that there is very little to be gained by the creditors by not agreeing to IVA as dividents in BR are much lower than in IVA, esp in the current economic climate, so worst case some of them won't vote at all but then how I understand it, whoever voted will be binding on others? might be wrong

I would only have been offering 13p in the pound if I had gone BR, as it is I offered 31p.

Most of my creditors did not bother to vote. But it is binding on all of them once it it has been agreed.

thanks everyone for your help and info which is greatly appreciated. i wish i had found this site earlier!

Given your scenario of 8 and 3 creditors - your IP needs to get a majority of 75% of the value of those creditors who vote in order to have the IVA accepted. Therefore if only three creditors vote, but they all vote yes, then the IVA will be deemed to be accepted.