Do You Qualify?
HomeWhat is an IVA?BenefitsDebt SolutionsIVA FeesDo You Qualify?FAQDo You Qualify?

Home › IVA Guides › The Creditor Meeting

The IVA Creditor Meeting: How Your IVA Gets Approved

The creditor meeting - now called a decision procedure - is when your creditors vote on your IVA proposal. Here is exactly what happens and how the 75% rule works.

What Is the Creditor Meeting?

The creditor meeting (formally a decision procedure since 2017 rule changes) is the formal process by which your creditors vote on whether to accept your IVA proposal. It is the defining moment of the IVA process. If the vote passes, your IVA is legally binding. If it fails, you explore other options.

Modern creditor meetings are almost never physical gatherings. Votes are conducted by post, email, or through online portals. Physical meetings are now very rare.

The 75% Rule - How Approval Works

Key rule: For an IVA to be approved, creditors representing at least 75% of the total debt value that votes must vote in favour. This is measured by value of debt - not by the number of individual creditors.
75%
Minimum vote in favour needed
By value
Not by number of creditors
Binding
On ALL creditors once approved
14 days
Typical creditor response window

Once approved by 75%, the IVA becomes legally binding on all creditors - including those who voted against it and those who did not vote at all. A dissenting minority creditor cannot opt out.

The Process Step by Step

  1. 1Nominee prepares the IVA proposal and all supporting documents
  2. 2Nominee sends the proposal to all known creditors, giving them typically 14 days to respond
  3. 3Creditors review the proposal and submit their votes - accept, reject, or accept with modifications
  4. 4Nominee tallies the votes and determines whether the 75% threshold has been met
  5. 5Nominee reports the result to you, to the court (if an Interim Order was in place), and to the Insolvency Service
  6. 6If approved, the IVA commences from the approval date and the Nominee becomes the Supervisor

What Modifications Can Creditors Propose?

Creditors can vote to approve your IVA with modifications rather than a flat yes or no. Common modifications include:

  • Increasing the monthly payment amount
  • Extending the IVA term from 5 to 6 years
  • Tightening the windfall or equity release threshold
  • Requiring a higher minimum dividend (return per £1 owed)
  • Requesting more frequent income reviews

Your Nominee will advise whether proposed modifications are acceptable. You can reject them - but doing so risks the IVA failing. Reasonable modifications are usually accepted in order to secure approval.

What If the IVA Is Rejected?

If the required 75% is not achieved, the IVA fails at the vote stage. This does not mean you are bankrupt - it simply means this proposal was not accepted. Options include:

  • Revising the proposal with improved terms and presenting it again
  • Considering alternative debt solutions (DMP, DRO, bankruptcy)
  • Negotiating directly with individual creditors
  • Seeking free independent advice from a debt charity (StepChange, CAB)
⚠ Important: HMRC is a major creditor in many IVAs and has specific acceptance criteria. Experience with HMRC IVA cases is an important factor when choosing your Nominee. A poorly structured proposal will be declined by HMRC's dedicated IVA voting team.

Find Your Debt Solution

Use our free, no-obligation tool to find the best option for your circumstances.

Do You Qualify?

Related Guides

Role of the Nominee
Who prepares and presents the IVA proposal
Role of the Supervisor
What happens after the IVA is approved
What Is an IVA?
Complete overview of the IVA process

This information is for general guidance only and does not constitute financial or legal advice. An IVA is a formal insolvency solution - fees apply and your credit rating will be affected. Seek independent professional advice before making any decisions.