The IVA creditors meeting is the meeting where an IVA is approved or rejected by creditors.
Historically the IVA creditors meeting was literally a physical meeting between creditors and the IVA applicant, specifically convened by an Insolvency Practitioner, to allow the applicant to put forward his IVA proposal to his creditors.
Nowadays though, the creditors meeting is almost a virtual meeting, with neither the creditors or the IVA applicant needing to be present.
But, even though the meeting is now almost virtual, the creditors meeting still carries a major significance for the applicant, for it acts as a focal point of their IVA application and, before an IVA becomes legally binding, it must be accepted by creditors at the creditors meeting.
The Insolvency Practitioner that has acted as the IVA nominee will normally act as chairperson for the creditors meeting.
As mentioned before, there is no requirement for the applicant to be present, though they can request to be, and in most cases all that is required is for the applicant to be available during the IVA creditors meeting via a telephone.
The creditors will normally cast their votes on the proposed IVA through email or fax, and the chairperson will determine whether the IVA has been accepted or rejected by counting the creditors votes.
Each creditor’s vote is equal to the percentage of the total debt that the creditor claimed in the IVA proposal. For the IVA to be accepted, there must be a vote of 75% or more of the creditors agreeing to the IVA proposal.
If a creditor does not cast his vote, then his vote will be counted as if he cast it along with the majority.
Once the IVA vote has been counted and an IVA has been accepted, then the IVA terms become binding on all creditors in the IVA, whether they voted to accept the IVA or not.
If you would like to discuss any part of the IVA process with an IVA specialist, call 0800 088 7503 and arrange a ‘no obligation’ consultation.
Alternatively, fill in the contact form on the side of the page and we’ll call you at your preferred time.
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