What happens before the meeting of creditors?
Before the meeting of creditors takes place, you’ll need to put together your IVA proposal. This is a document that sets out the terms of what you’re offering your creditors through your IVA. We’ll help you put this together and send you a copy for review.
After you’ve read through the proposal, one of our Insolvency Practitioners (your Nominee) will arrange a time to talk to you over the phone. They’ll go through the proposal with you to make sure an IVA really is the best solution for your debts.
Once both you and your Nominee are satisfied with the proposal, your creditors will review and vote on it. Anyone you owe money to will be sent a copy of your proposal, and creditors get up to 28 days’ notice of the meeting. We’ll also send you a letter telling you when the meeting will take place.
What happens during the meeting of creditors?
Once the creditors have been given notice of the meeting, the voting will start. Each set of votes will be reviewed. You’ll also get a letter confirming the date and time of the meeting.In order for your IVA to be approved, more than 75% of the value of the creditors that vote must agree to it.
Sometimes creditors may ask that changes are made to the proposal. These are called modifications. A typical example of a modification request would be an increase in the monthly payments being offered or an extension to the length of your IVA.
If your creditors request a modification, we’ll let you know as soon as we can. It’s important that you have time to think about what they’re asking for and how it may affect your budget. The meeting or deadline can be postponed to give you extra time if you need it.
It’s important that we’re able to get in touch with you during the voting process to discuss any modifications requests. We’d also need to let you know the outcome of the voting and talk you through the next steps. Your IVA can’t start until we’ve spoken to you.