Your first IVA meeting

The first meeting with the creditors sounds fearsome to some IVA applicants. The reason being, your financial affairs are being scrutinized in front of your creditors and you have to give explanation of each and every expense that you incurred. Earlier, a few of IVAs were there when it first started some years back, so this concept came into picture.

In the last few years, IVAs have become a common mode for sorting your debt problems. Debtors need not attend the meeting. This meeting is arranged with the sole aim of having a face-to-face interface between the applicant and the creditors.

But this doesn’t mean that the debtors are relieved easily from creditor’s interrogation. The creditors can question IPs directly if they have verified the debtor’s expenditures properly. Whether it relates to their monthly bills or anything else. IPs have to do a detailed verification of all the expenditures incurred by the debtors.s

The creditors make a record of the received IVA proposal with them and pass the same to a specialized IVA department who then votes on their behalf. The creditors are to poll for their vote usually one day before the meeting. The rules for voting are then mailed to the Insolvency Practitioner. Creditors can then vote according to the size of their unsecured debts. A minimum of 75% of total votes casted have to be achieved in order to get your IVA approved. At least one creditor should vote in its favor and the actual amount of votes casted at or before the meeting are taken into account for majority basis. The absentees can vote only if an adjournment of meeting is allowed.

It’s not compulsory for the creditors to accept the proposal. They may accept it as it is or reject it or can imply certain conditions such as an increase in the rate of interest or specify a minimum amount of dividend for them.

If the debtor absents himself at the meeting, any modifications in the proposal are forwarded to him by the IP. Now it’s the choice of the debtor to either accept the modifications offered by creditors or reject it or to have a compromise with them. If it results to any compromise, your IP informs the creditor and adjourns the meeting. The original vote of the creditor can be counted or he may choose to vote again at such adjourned meeting. The meeting can be adjourned for a maximum of 14 days from the original date and in order to give rise to an IVA, the debtor must accept sufficient creditors' votes by then.

Conclusion:
IVA helps you to get rid of your worries and your debts. To enable an IVA to go ahead, the whole process is now simplified. So, don’t be worried about your first meeting with creditors, just go for it.