Chances of IVA Rejection

Here is a common question we’d like to address for those of you who might be wondering this yourselves:
“I know each of my creditors have different view so what are the chances of my IVA proposal being rejected?”
During the Creditors Meeting that will be held in order to approve your IVA, creditors representing more than 75% of your debt’s value must approve the arrangement. If this passing vote cannot be reached and those creditors who have not voted cannot be convinced to vote in favor of the IVA, then it is considered rejected.
As you IVA is being drafted, your Insolvency Practitioner is there to make sure that the dividends each of your individual creditors want from you are included in the IVA whenever possible. Your Practitioner is a competent, licensed professional who would not offer you an IVA that he or she does not believe will have a strong chance of being approved. Keep in mind that your Practitioner works on your behalf so it is in their own best interest to give you the finest advice they possibly can.
Certain creditors will make it a point to require specific dividends during the 5 year period of your IVA. Most creditors will attempt to recoup 25% of what they loaned you originally through the IVA, but your Practitioner can take figure out the latest requirements those creditors involved have prior to putting your IVA together.
If your debt is very new there is the risk that a creditor may want to reject the proposed IVA. If the creditor believes the money was taken with the debtor knowing in advance that they could not repay it then that could be seen as cheating and make them less likely to cooperate.

Here is a common question we’d like to address for those of you who might be wondering this yourselves:

“I know each of my creditors have different view so what are the chances of my IVA proposal being rejected?”

During the Creditors Meeting that will be held in order to approve your IVA, creditors representing more than 75% of your debt’s value must approve the arrangement. If this passing vote cannot be reached and those creditors who have not voted cannot be convinced to vote in favor of the IVA, then it is considered rejected.

As you IVA is being drafted, your Insolvency Practitioner is there to make sure that the dividends each of your individual creditors want from you are included in the IVA whenever possible. Your Practitioner is a competent, licensed professional who would not offer you an IVA that he or she does not believe will have a strong chance of being approved. Keep in mind that your Practitioner works on your behalf so it is in their own best interest to give you the finest advice they possibly can.

Certain creditors will make it a point to require specific dividends during the 5 year period of your IVA. Most creditors will attempt to recoup 25% of what they loaned you originally through the IVA, but your Practitioner can take figure out the latest requirements those creditors involved have prior to putting your IVA together.

If your debt is very new there is the risk that a creditor may want to reject the proposed IVA. If the creditor believes the money was taken with the debtor knowing in advance that they could not repay it then that could be seen as cheating and make them less likely to cooperate.

Comments (2)

 

  1. Harold J Smiten says:
    February 18, 2010 at 6:17 am

    Does any one know anything much more about unfair credit agreements? The papers inside the UK are carrying loads of adverts for these and they reckon they’re greater than IVA’s. Surely a large organization like Capital One would not permit any documents to not be legal?

  2. payday loans says:
    February 20, 2010 at 6:55 pm

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