main creditor not voting.

[Martha07]

I was just windering how my other creditors would stand is my main creditor didn't vote. Our main creditor is beneficial finance who we owe £14k to. Other than that we owe lloyds tsb 10k, hsbc 6k and 4k to various store cards. If beneficial don't vote how would my other creditors have to vote for my iva to be approved?

[carlmcmullen]

H Martha,

Providing you get one vote (regardless of value) and 75% of voting creditors accept then ALL creditors are bound by the arrangment.

Carl

[carlmcmullen]

Forgot to add that if you are proposing a joint arrangement then you need at least one vote from yours and your partners creditors.

Carl

[ianmillington]

You need (in value) 75% of those creditors who actually vote to vote in favour for your VA to be approved. So, if your smallest creditor is the only one to vote, and their vote is in favour, then you've got 100% acceptance.

When is your meeting, by the way?

ian

[Martha07]

Not sure yet. I had a call from clearstart yesterday and my proposal is being draughted. The think it'll be end of feb beginning of march. They seem to be proposing a very low amount though (27p in £) we said we could afford more but they said with our I+E that we would be cutting it very tight. We're used to living on a budget though so thought we could manage it. It works about about £200 a month which I thought would'nt be accepted.

[goulda]

Only two creditors out of eleven voted when my IVA was being set up. Thus a 100% vote was acheived which meant the other nine creitors were bound by the decision of the two who voted.It is interesting that my IVA started in July 06 and at last year's I/E review only two creditors had made a claim.

[MelanieGiles]

Under the new IVA protocal creditors have to claim within 4 months of the creditors meeting or be excluded from ranking for dividends. I am sure that this will speed up things like this in the future, and ensure that dividends can be repatriated at a much earlier time.