www.iva.co.uk

Could anyone please advise me about the 75% ruling on an IVA assessment.

Does it mean that 75% of the number of creditors have to agree (i.e. 9 creditors out of 12) or does it refer to 75% of the total value of the debt, regardless of how it is spread amongst the creditors ?

Any clarification would be most welcome.

Hi
It means 75% of the creditors who do vote - sometimes creditors do not vote (even ones who may have been constantly phoning prior to the meeting as some members have stated) Hope this helps
Sue

its made up by the total of debt owed, ie cred 1 is owed £50, cred 2 is owed £25 and cred 3 is owed £25 cred 1 has 50 % of the vote the other 2 have 25%.
hope that helps so if cred 1 + 3 vote you have your 75% if only cred 2+3 vote you only have 50% of the vote
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

Hi
Its 75% of the debt of the total debt held by the creditors that VOTE at the meeting.
So creditor a] is owed 10k
" b] is owed 6k
" c] is owed 4k
" d] is owed 10k
" e] is owed 20k

If only a,d and e vote[total 40k] and a votes NO,then the IVA would be approved because d and e have 75%of the vote[30k out of 40k]
I hope this helps
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

You need aceptance from 75% of the voting creditors whose votes are weighted pro rata to the debt they are owed.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

And do remember that associated votes (usually from relatives) are excluded from the voting process at the second stage, where you then need to obtain a simple (50%) majority.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Hi Melanie
Can you just explain what you mean by the second stage
Thanks

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

Is it right to say that SIVA's will be available in the Autumn for debts less than 75k and these will only require a common majority (ie 50.1% or more)?

There are two stages of voting in cases where there are associated creditors. This is designed to stop family members from pushing through IVA's to the detriment of other non-associated creditors.

1 Vote 1 - proofs of debts and proxies are examined to see if there is a 75% majority. If there is the IP moves to -

2 Vote 2 - where the associated creditors are removed from the process, following which a simple majority must prevail from the non-associated votes.

SIVAs are unlikely to be in place until the end of 2008, and at the moment are proposed to be based on a simple majority.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk