Will my creditors accept my IVA application?

When we assess your situation and suitability for an IVA, we use our experience and knowledge to work out how likely it is that your proposal will be accepted. While we don’t have a crystal ball to be able to know exactly how your creditors will respond, based on previous applications we have a very good idea.

One of the key factors in getting your IVA proposal approved is how detailed and accurate your explanation of your financial situation is. Creditors like to know the reasons why you got into difficulties with debt and what you’ve done to try and repay them.

They will also look at how much you are reasonably able to afford to repay each month in relation to your overall debt when making their decision. If for example, they are only likely to get a small return such as 5p in every £ you owe them then they will probably decide to reject your IVA application.

It’s important to remember that in order for your IVA to go ahead, you’ll need 75% of your creditors by value to vote yes. This could mean that only one of your creditors has to vote yes for your IVA to proceed. Any other creditors are bound by the majority decision.

If you found this answer helpful you may also want to look at the following:

What happens if some of my creditors vote against my proposal?