Block voting by creditors

Before an IVA can be considered 'accepted' each creditor is invited to cast their vote as to whether they agree to the IVA proposal before them.

There are strict rules in place, designed to balance the power of each creditors' vote fairly. The strength of each vote is determined by the amount each creditor is owed as a ratio of the total debt included in the IVA.

So, if a creditor is owed half the total debt included in the IVA, their vote will equal 50% of the total voting rights.

Creditors' Meeting

The votes are usually cast either just before or during the 'Creditors' Meeting'.

For the IVA proposal to be considered accepted and, therefore, become legally binding on all creditors, there must be more than 75%, in debt value terms, of votes cast 'in favour' of accepting the IVA.

Voting tactics

If a creditor holds 25%, or more, of the total debt to be included in an IVA, their vote alone gives them the power to single handedly reject the IVA proposal before them and cause the IVA application to fail.

If a creditor in this position doesn't want the IVA to go ahead, there's nothing that can be done to force them to accept it.

But, if a creditor has a claim of less than 25% of the total debt and doesn't want to accept the IVA, they become reliant on other creditors wanting to reject too. Single handedly, their vote isn't strong enough to force a rejection.

When two minority creditors join forces to strengthen the voting power in this way it's referred to as Block Voting.

Professional IVA Advice

If you're struggling to understand certain aspects of the IVA process and would like to have a chat with an IVA adviser, please call 0800 088 7503 or, alternatively, complete this form and one of our team will contact you at your preferred time.

Ask for Help

Key Information
  • We only use your personal data for the purpose for which you provided it.
  • We only share select data with external parties where it is necessary in relation to the services that you have requested we carry out on your behalf, and we'll always ask for your consent beforehand, or if we are required to do so by law.
  • You can always get in touch to ask us what personal data we hold and to correct and update your data if anything changes. For an overview of your rights check out our Privacy Policy.
  • By checking the “Agreement and Consent” box you agree and give your consent for us to use your information for the purpose described.

In accordance with the Financial Conduct Authority's guidance, please follow this link if you would like to read a free guide about In Debt - Dealing with your creditors
To find out more about managing your money and getting free debt advice, visit Money Advice Service , an independent service set up to help people manage their money.

'' is a trading styles of IVAorg CIC. Company Number: 08560305 | Data protection registered ZA033231
IVAorg CIC is authorised and regulated by the Financial Conduct Authority (FCA) | Firm Reference Number (FRN) 684439