SimpleIVA
What to do if Your IVA Proposal is Rejected

Finding an alternative debt solution


First of all, it’s important to note that the majority of IVA companies will not agree to act on your behalf and prepare a proposal if they think it’s going to be rejected.

For your IVA proposal to be accepted you need 75% of your creditors that choose to vote, to accept the proposal. It may be that you owe more than 75% of the overall amount of your debt to just one creditor or that this figure is made up by numerous individual creditors.

So if you owed £40,000 you would need creditors totalling £30,000 to agree in order for your IVA proposal to be accepted, this assumes that all of your creditors vote.

The following information is intended as general debt advice only. In order to get help tailored to your own circumstances it’s always best to speak to a professional debt adviser.

Some alternative options
  • Resubmitting your IVA proposal – If there has been a material change in your circumstances since your IVA was proposed and rejected it may be worth speaking to the IVA company. They may agree to resubmit the proposal to the creditors with the changes.
  • Debt management –If your IVA is rejected then you may want to use the opportunity to explore other debt solutions. A debt management plan involves negotiating a reduced monthly payment with your creditors and can provide valuable breathing space while you get your finances back on track.
  • Bankruptcy – If your IVA proposal is turned down then depending on your circumstances, bankruptcy may be your only viable option. This is often considered the last resort when it comes to debt solutions but for many people it provides a method of dealing with overwhelming amounts of debt.
There are many different types of debt solution tailored to different sets of circumstances. If your IVA proposal is rejected for whatever reason then it’s important not to panic.

If you’re in any doubt about the reliability of the debt advice you received before applying for your IVA or unhappy with the way it was handled, it pays to get speak to a company you can trust.

Call now on 08000 43 43 47 to discover if an IVA could be the solution to your debt problems or complete our IVA Wizard and see if you qualify for an IVA