How is my IVA proposal voted on?

This still referred to as a “meeting” as this is the term used in legislation. In reality, this just defines the date and time by which creditors must respond to the proposals and cast their vote.

IVA applicants are usually required to be available by telephone at this time to discuss any questions or modifications creditors may require.

The MOC process is totally electronic and does not involve any actual meeting.

Voting criteria

All included creditors are entitled to vote on the IVA Proposal.

The proposal needs at least 75% of the vote, by the value of the debt, to be in favour for it to be accepted.

Not all of the creditors may choose to vote. The IVA is accepted if 75%, by the value of the debt, of the creditors who do so – vote in favour.

Regardless of the number of creditors or the breakdown of the voting, when the proposal is accepted, it is binding on all creditors. Even if a creditor voted against the motion, or did not submit a vote at all, they are still bound by the agreement and cannot take alternative action.

Modifications

while we endeavour to prepare proposals that will be accepted, in some instances creditors can put forward modifications to a proposal for them to accept it.

In all cases, we will contact the applicant to agree on any changes to the proposal. It is the applicant’s decision as to whether to agree to the changes and to go ahead with the IVA or not.

Omitted Creditors

While we must be informed of all known creditors, should one be omitted in error from the proposal and emerge once the IVA is underway, they can be included retrospectively. They are entitled to demand an amount equal to that which they would have received if they’d been included since the beginning.

Depending on the size of the debt the IVA holder may be asked to increase payments or extend the term of the IVA to ensure that including the additional debt does not have a detrimental effect on other creditors.

After the meeting of creditors

The IVA applicant is phoned shortly after the meeting to be told of the outcome.

The Insolvency Practitioner (or a member of their team) prepares and distributes what is called The Chairman’s Report of the Meeting of Creditors. This is sent to all creditors, the IVA applicant and the relevant court which has jurisdiction concerning the MOC. This report records the decision of the MOC and shows how creditors voted. It also lists the modifications and their projected effect on, e.g. the dividend which creditors may expect to receive.

This is also sent, with if applicable, details of any modifications from the original proposal. This must be signed and returned to confirm everything is understood by the applicant.

Please call 0800 014 9675 or a contact us if you have any questions or require some assistance with your debts.