What happens if the IVA fails

[bands]

What happens if the IVA fails because 1 refuses and has 30% of total debt

[go_4_broke]

Hi bands

You really need an IP to answer this but I think if the situation can't be changed you're a bit stuffed.

You may have to consider another debt solution, at least in the short term.

With luck, your 30% creditor may sell on the debt and the buyer may be more compliant. This depends on the particular creditor's policies and your IP may be able to advise you on the likelihood of this.

There is another ray of hope on the horizon. Once the law changes, with luck later on this year, only a 51% vote will be needed in which case it will be your awkward creditor who is stuffed (as long as your total debt is less than 75,000).

-Best


'5 years sticking my head into the Lion's mouth of debt !'

[accgroup]

Hello Bands

If a creditor who holds 30% of the total unsecured debt rejects the IVA proposal the IVA cannot be approved and, as suggested by go 4 broke, you would have to consider an alternative solution. It may be that your IP can negotiate with the creditor who is rejecting though - your IP will be able to advise further.

Hope this helps

AccumaGroup - A large insolvency practitioner service based in Manchester.
www.accumagroup.com