How do creditors’ meetings work?
The creditors will vote at a creditors’ meeting to decide whether or not they agree to the IVA that you’ve proposed. Creditors won’t usually vote in person, but by proxy. So it’s a paperwork exercise. Creditors will submit their proxy voting either for or against a voluntary arrangement proposal. For the arrangement to be approved, 75% in value of the creditors have to say yes. That’s 75% in value of the creditors who bother to vote at the meeting. So if, say, the only creditor to vote was a mail order company to which you owed £500 and they said yes, the IVA would go through, even if you owe £60,000 to other creditors which haven’t voted. Back to questions…
