What happens if some creditors refuse, and others accept?
 
The many benefits that are associated with an IVA can only be realised if the majority of your creditors accept the terms of the IVA proposal. These terms will be set forward by the licensed insolvency practitioner who manages your IVA. This majority is defined by value of debt, not number of creditors. The great advantage is that this agreement would be legally binding on all the creditors; even the ones who did not consent to the IVA. This is because the creditors who advanced 75% of the original debt are the ones whose votes count.

Creditors use two basic rules when they have to decide whether to agree to an IVA:

They won�t go for it if your outstanding unsecured debts amount to less than �15,000 and the cost of the IVA, as a proportion of the outstanding debt, is too high to be of any economical value to them.

If the monthly repayment is under �200 and the cost of running the IVA would absorb too much of the money coming in to make it useful to them, they won�t vote in favour.

For more information see:
What is an IVA?


 
 
     

 

 
Action Bar

IVA help ForumThe IVA Forum: Top 30 Hot Topics
 
Active Topics on IVA Forum
<t>Can my pension pot be touched?</t> (by: gerald)
Cant find my other post (by: Lauren1995)
<t>How much should I offer to settle my IVA?</t> (by: richard465)
6 Years, 2 Months and 18 Days... (by: BigHugo)
<t>Two questions</t> (by: Tigerrage001)
<t>Does an IVA affect settlement status?</t> (by: tinaye)
<t>Should my IVA be complete by now?</t> (by: jason305)
Full and Final Offer (by: n434937)
Completed IVA (by: Philly2020)
CF nightmare (by: Francesca)
<t>Do I have to tell IP if I change my bank account?</t> (by: Jessicamj)
<t>Help please</t> (by: ben725)
<t>No update from IP since final IVA payment in April</t> (by: rebecca138)
<t>Selling house whilst in a IVA</t> (by: l385)
Iva review (by: Jessie91)
Iva and wife is pregnant (by: Adam_7985)
<t>IVA sorted - and thank you!</t> (by: kevin323)
<t>Informing IP of a gift?</t> (by: jean821)
<t>Council tax payment</t> (by: chris228)
<t>Old debt resurfacing post IVA</t> (by: mick524)
<t>Why are they looking at equity in my house?</t> (by: jacqueline699)
<t>All debts in my iva?</t> (by: Newtoallthis2019)
Switching banks (by: Wespnest)
<t>Curtis Faraday anyone?</t> (by: christine737)
<t>How are Snap On tools dealt with in an IVA</t> (by: joseph635)
<t>Di I have to sign an RX1 form?</t> (by: melanie734)
<t>Once sold - will all equity go to iva?</t> (by: mich283)
<t>How do I remortgage to release equity?</t> (by: Peepaddle)
6 years and 8 months later (by: Emmaj)
<t>Effects of an IVA</t> (by: rosie472)
Forum BrowseForum JoinForum Search

Free Debt Guides
FREE useful guides!