Chartered Accountant
Licensed Insolvency Practitioner

41 Kingston Street, Cambridge CB1 2NU
Tel: 0800 1953605 (Free call) or 01223 367022
Fax: 0844 5048737


IVA - What happens if they don't like the deal ?

The creditors' meeting gives a face-to-face opportunity to discuss the proposal and for modifications to be put forward by either debtor or creditor to improve the terms of the arrangement and thereby secure the necessary support from creditors.

The Insolvency Practitioner chairing the meeting can then adjourn it for up to two weeks while modifications put forward at the meeting are circulated to those creditors who did not attend to see if they will now support the modified proposal.

If the necessary 75% support has still not been achieved after 2 weeks, then the proposal has been rejected and you are back to square one.

If it was necessary to obtain a Court order suspending creditor action against you while the proposal was put together ("Interim Order"), another similar order cannot be applied for during the next 12 months.

If an Interim Order is not necessary, you could in theory, put forward another proposal immediately. However, if the creditors rejected your first proposal they are unlikely at this stage to accept the alternative.   You would be strongly advised to put forward the best deal that you can offer them from the outset.

Having said all this, creditors don't usually reject IVA proposals, I get over 90% of mine accepted.  If I don't think what you're proposing will be accepted I'll tell you before we start.

No approval, no fee IVA, click here for details.  Pay nothing until creditors approve your IVA proposal.

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IVA Questions and answers.

I have serious debt problems. What are the options ?

How do I know whether an Individual Voluntary Arrangement (IVA) is the best answer to my problems ?

How do I work out how much I can afford to pay per month ?

OK I'm considering an IVA . How does it work ?

Do I have to attend meetings, or can this all be done by correspondence ?

What do creditors expect from it and how likely is it they'll accept it ?

Are all of them forced to accept the majority decision ? I've got one hell bent on making me bankrupt.

What happens if they don't like the deal ?

If the IVA is rejected, do I owe you anything ?

I've buried my head in the sand, now I've got a bankruptcy petition hearing next week. Is there something that can be done at this late stage ?

Will it really write off all of my debts ?

Will I live in poverty for the duration of the IVA ?

What if I win the lottery or get a big pay rise ?

Will it appear in the newspapers ? Will people know about it ? Will I ever be able to get credit again ?

Is an IVA more expensive than just going bankrupt ?

What will happen to my house, furniture, car and domestic effects ?

I run a business. What will happen to my business ?

I'm a professionally qualified person. Will I lose my livelihood ?

My partner has no debts, and I'm living with him/her. Will he/she have to contribute to the IVA ?

My partner and I have joint debts. Can we lump them all together in the same IVA ?

How do you get paid ? What does this all cost ?

There are plenty of Insolvency Practitioners or debt advice companies around. Why should I instruct you ?

What happens if I'm unable to keep up with the payments ?

What happens at the end of the arrangement ?

What other web sites do you suggest I look at for bankruptcy/IVA advice ?

Please note that this site deals only with personal insolvency law in England, Wales and Northern Ireland. By law, only a Licensed Insolvency Practitioner can undertake an IVA for you. If you need an Insolvency Practitioner in Scotland, visit The Institute of Chartered Accountants of Scotland.   Interested in members voluntary liquidation ?

Copyright © Philip Beck Insolvency Practitioner, Cambridge UK, 2005. Bankruptcy and individual voluntary arrangements explained. Free IVA Advice. How to avoid bankruptcy with an Individual Voluntary Arrangement. Debt, debt advice, debt management, debt consolidation.

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