votes

[ray72]

what are the odds on their being enough votes by creditors as it scares me that i wont be accepted for an iva,

[Dominic]

it is done by volume i belive so the biggest creditor has the most votes

[Oliver]

Dominic is correct. The weighting of a Creditors vote is calculated pro rata to the holding of your debt i.e if you had 4 Creditors and of those 4 Barclays held 50% of your debt, if Barclays decided to vote on your proposal they would have 50% of the vote.

Remember though that it is only the people who vote who count so even if Barclays failed to vote as long as you got a yes vote from 75% of those who did vote (Pro-rata to the percentage of debt they were owed) your IVA would be accepted.

Here is a working example.
A person owes £100,000
50k Barclays
25k Halifax
25k Lloyds

Barclays do not vote on your IVA proposal but Halifax and Lloyds both say yes. Despite the fact that those two only hold pro-rata 50% of your debt you have managed to secure a yes from over 75% of those who have voted and your IVA would be accepted.




You can access Video Clips giving additional information about IVAs at:
http://www.thomascharles.com/interview_ ... an_iva.asp

If you would like more information about IVAs, other debt solutions, or just want to arrange an informal chat, please visit us at www.thomascharles.com.

Best Regards
Oliver
www.thomascharles.com

[accgroup]

Hi Ray

The above comments are correct, but I think you are concerned that no one will vote at all?

There are certain creditors who are more inclined to vote than others, the major banks have representatives from large accountancy firms who they use to submit proxy forms to vote on their behalf. These firms have small teams who deal purely with voting on IVAs so as they have a high volume to get through they will sometimes prioritise the cases where they have large claims.

Your IP will be in contact with these representatives in order to try and ensure they get a vote, if you are concerned you should contact your IP to discuss.

Your IP will also be able to adjourn the meeting for up to 14 days in order to try and obtain votes if they are not received in time for the first meeting.

Hope this helps



AccumaGroup
http://www.accumagroup.com - One of the UKs leading debt and insolvency advice firms with over 200 employees.

[iva_squirrel]

Hello Ray,


At the meeting, creditors can either vote to accept, or reject the debtors proposals or accept them with modifications but these can only be made with the debtors consent. The rules of an IVA state that providing 75% (in value terms) of those that have voted, vote to accept the proposals (with or without modifications) then the IVA is agreed and becomes legally binding on all other parties whether they voted or not. The effect of this is that, any creditor who chooses not to vote at the creditors meeting is bound by the decision of those who do.


Hope this helps.


For more information about IVAs, please visit my website:
www.supersonicsquirrel.net

[Oliver]

Try not to worry too much as your IP is unlikely to have taken your case on if they felt that they would not be able to obtain enough votes to have your IVA accepted.



You can access Video Clips giving additional information about IVAs at:
http://www.thomascharles.com/interview_ ... an_iva.asp

If you would like more information about IVAs, other debt solutions, or just want to arrange an informal chat, please visit us at www.thomascharles.com.

Best Regards
Oliver
www.thomascharles.com

[brassic]

I've just started down the IVA route, having given all my financial details tonight, I now await a call within 5 days from my IP to see if its all possible.
One thing that is concerning me is the fact that 40% (£30K) of my debt is to Barclays, so if they vote against the proposal it will fail regardless of the other 10 creditors? I know Barclays decision will be on a case by case basis, but does anyone have any experiences/ hunches as to how co operative Barclays are with these things..............if its bad news I still want to know, I'll brace myself!

[Oliver]

Hello Brassic

The good news is that in my experience Barclays have been fairly receptive to IVAs where they have a large debt owing and are offered a proposal that would put them in a better position than if you went Bankrupt.



You can access Video Clips giving additional information about IVAs at:
http://www.thomascharles.com/interview_ ... an_iva.asp

If you would like more information about IVAs, other debt solutions, or just want to arrange an informal chat, please visit us at www.thomascharles.com.

Best Regards
Oliver
www.thomascharles.com

[neverending]

Hi
Just to add my thoughts and they are that most of the High St banks are likely to vote in favour if ,as Thomas Charles states,this will give them a better return than bankruptcy.American Express and Diners Club are the opposite and are likely to vote against an IVA.
Regards

[Dominic]

my largest ceditor is Lloyds, followed by Halifax then Barcalycard, then Sainsburys Bank then Royal Bank of Scotland, COOP then Dell