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Can a creditor accept an IVA at the first hearing and rejected it at the second ? |
Submitted on: 1st Oct 2009 by Non-Member | Total Answers: 1
We are on the second hearing for an IVA. The first was rejected by a particular lender with a lage proportion of the outsatnding debt. We then addressed the issues put forward and resubmitted a second IVA without changing any details. Only this time the creditors who accepted the IVA last time decided to change reject it. Are they barred from doing so legally?
Subsequently, Between the first and second IVA, the creditors who have now decided to refused the second IVA proposal has made application to register a charge against our property one charge has already been registered and the other is to be finalised at a court hearing in November. Is this legal and does the IVA, if accepte superceedes the charge agaust the property? Currently we are i badly in negative equity.
Re: Can a creditor accept an IVA at the first hearing and ...
As we discussed just now, creditors do have the right to object to an IVA although the situation you describe isn't normal. You already have an IVA proposal and have had 2 meetings of creditors so you should be getting good quality professional advice from your licensed insolvency practitioner.
As far as i know (and I've never run a meeting of creditors) if the creditors hadn't objected at the second meeting their yes vote at the first meeting would have stood. Your IP needs to find out why they changed their minds.
An IVA would supercede the county court judgment but not once it has been charged on your property. Your IP should be dealing with this matter as a priority.
The good news is, if the creditor (who I think you said voted against the IVA) gets the charging order, they will not vote in the IVA and it may be easier to get it passed.
I'm sorry I couldn't give you definitive answers without facts and figures. I've sent you a link on your other answer so you can find your IP's email address directly
This question was answered by Debt Advice Foundation, an independent UK debt advice charity. If you're considering entering into an IVA, Debt Advice Foundation provides a free, confidential helpline and can advise you on whether you qualify. Click here to find out more.
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