All about IVAs
What happens at a Creditors Meeting?
The creditors meeting is when your unsecured lenders vote on your IVA Proposal. If enough of them agree to the terms you and your IP have suggested, your IVA will go ahead. If they don't, your IP might still find a way to make it work.
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What is an IVA creditors meeting?
It's when your lenders tell your IP whether or not they agree to the terms you've spelled out in your IVA Proposal.
These days, it's not really a meeting - it's more of a deadline. Some or all of your lenders may already have told your IP what they think about your IVA Proposal.
Once the creditors meeting comes to an end, all lenders will be bound to accept the decision, whether they accepted the IVA, rejected it - or didn't vote at all.
Do I need to attend my IVA creditors meeting?
No. You just need to make sure you're reachable by phone on the day of the meeting. That's it.
What will be discussed at a creditors meeting?
Your lenders just tell your IP what they think about your IVA Proposal. They might approve it, reject it - or request changes to it (known as 'modifications').
If they request any changes, your IP will call you to discuss them. Basically, if you agree to a lender's request(s), their vote will be counted as a 'yes'.
Of course, you might not need every lender's approval for your IVA to start. All you need is approval from lenders who account for at least 75% of your unsecured debt. As long as that happens, the other lenders won't be able to stop your IVA going ahead (that also goes for lenders who don't vote).
And there are some modifications that the IP can accept without even bothering you about them.
- If it's a question of how much goes to your lenders and how much goes towards your Insolvency Practice in fees, this doesn't have any direct impact on you, so it's up to your IP to decide whether to accept it.
- But if a modification involves a change to your payments, for example, or the length of your IVA, you'd have to decide whether or not to accept it.
When will I know the outcome of the creditors meeting?
Your IP will just need enough time to double-check and make sure every lender's vote has been recorded properly.
So you'll know within a few hours of the final vote being cast - you'll know whether it's been accepted (which means your IVA can go ahead) or rejected (which means your IVA won't be going ahead).
It's also possible that your IVA won't be accepted or rejected on the actual day of the creditors meeting. The meeting could be adjourned for a maximum of 14 days if your IP needs to 'chase' other lenders to get them to vote.
Once the creditors meeting comes to an official close, your IP will draw up a Chairman's Report that confirms what happened at the meeting: who voted, who accepted the terms, what modifications were requested, etc. This Chairman's Report is sent to you and to each of the lenders involved.
Will my creditors agree to my IVA?
They don't have to.
If they think there's a better way of getting the money repaid - like trying to make you bankrupt - they can reject your IVA Proposal.
If they think an IVA is the best way but they're not convinced that the terms in your IVA Proposal are fair, they'll request some changes to the terms. Your IP will talk to you about these requests (see above).
Remember: you do have the right to refuse any modifications your lenders have requested. If you don't think those changes are reasonable, you're free to take a different approach to your debts (like bankruptcy, or a debt management plan).
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Subject to eligibility and acceptance. Fees Payable. Debt write off applies to unsecured debts only and on completion of an IVA, alternative solutions may be offered. If your IVA fails, it could lead to Bankruptcy. Your ability to obtain credit will be affected for at least 6 years. Homeowners may be required to release the equity in their property.