What if my creditors don't agree to my IVA proposal?


What happens if your creditors don’t agree to your IVA proposal depends on their reasons for not agreeing. If your Insolvency Practitioner believes your proposal is salvageable by making adjustments that you’re happy with, then your meeting can be adjourned and your proposal redrafted.

If your creditors’ expectations are so far away from your own that there’s little chance of ever finding a reasonable compromise then you do still have options.

Your Advisor should have already considered debt restructuring solutions such as remortgage before considering an IVA. If they have, the options that remain are to consider Bankruptcy or, if you believe your financial circumstances are going to materially improve in the comings months and you have significant assets that you wish to protect, to enter into a long term non-fee charging Debt Management Plan (Informal Arrangement).

If you are going to consider entering into an Informal Arrangement under these circumstances, it's important that you are comfortable with the length of time it will take to repay your debts in full as there's no guarantee that your circumstances will improve.

You can read more about IVAs and whether they are suitable for your situation in our IVA section.

Debt Advice Foundation is a registered UK charity offering free, confidential support and advice on any aspect of debt, including IVAs. If you need to talk to someone about debt, please call the charity's helpline on 0800 043 40 50 to speak to an adviser.