What does it mean if my IVA is not approved?
My IVA has not been approved.
We receive a lot of calls and emails from the public asking; "What does it mean if my IVA is not approved?".
When your creditors receive the IVA proposal, drawn up by the Insolvency Practitioner, there are several things for them to consider before they vote. They initially want to be certain that the offer they are being asked to accept is a reasonable one and better than what they would get if they pursued you for bankruptcy. They look at level of assets that you have, such as equity in a house and the value of any car etc. They also consider how long ago it was that the credit was taken.
When they vote at least 75% in value of the voting creditors must vote to accept the proposal. If this majority isn’t reached then your IVA cannot be approved and it is deemed a Rejection. This means that you will not be protected from interest and charges still being added to your accounts and the creditors are still at liberty to take legal action against you.
If you wish to discuss the Individual Voluntary Arrangement (IVA) procedure and understand how it can help you please complete the following form or telephone freephone 0800 074 6918.
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