How your creditors vote on the IVA Proposal

All of your creditors, or their proxies, can vote on your IVA Proposal. If 75% by value of those who do actually vote agree to your IVA proposal it, is accepted. "By value" means the votes are weighed by the amount of money owed to each creditor and that the votes are not based on a head count. This will mean that if you owe 75% of your total debt to a single creditor then that creditor will have the casting vote on your IVA Proposal. Similarly, one creditor who is owed 25% of the total debt can block the approval of your IVA if they are not completely happy with it. No matter how many creditors you have, they are all bound by it once it is approved and those who voted against or did not vote at all have no recourse to any alternative recovery action.

If any new creditors should appear after the IVA has started, they are allowed to demand an amount that would be equal to what they would have received had they been included at the beginning of the IVA.

Once your IVA has been approved by your creditors our Licensed Insolvency Practitioner becomes Supervisor of the arrangement and will manage the IVA in the interests of creditors to ensure that you abide by the agreed terms and make the payments required. These payments go into a fund managed by the Insolvency Practitioner and regular payments are made to creditors from the fund throughout the term of the IVA.

It is imperative that you maintain the payments into your IVA; otherwise the creditors could seek to have you declared bankrupt. Your creditors will expect you to honour and comply with the terms of the IVA agreement that you have agreed to.

If your financial circumstances change during the course of your IVA agreement we would advise you to inform your Insolvency Practitioner of these changes so that the payments you make can be adjusted accordingly.