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No. The IVA is a formal, legally-binding
arrangement, so once the creditors have agreed
to it, they cannot pull out or renegotiate the
terms. This is one major benefit of an IVA
compared to informal repayment plans, where the
creditors can alter their position whenever they
feel like it.
What happens if some creditors refuse, and
others accept?
For an IVA to be successful, you need most of
the creditors to accept the proposal. It will
then be legally binding on the others, even if
they refuse. To be more precise: of the
creditors who respond to your IVA proposal,
those who have lent 75% of the total debt
represented by vote need to accept the IVA. For
this reason, if you have four creditors or more,
your IVA proposal will have a better chance of
success.
For more information see:
IVA Helpline
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