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The IVA will need to be agreed upon by the creditors at the Creditors' Meeting before it will become legally binding. At the meeting there is a complicated voting procedure by which all IVAs are either accepted or rejected by the creditors.
An IVA will also often be accepted with conditions attached. These conditions are called Creditors Modifications and can range from how the IVA will be managed over the repayment period by the Nominee, through to the size of the monthly repayment you will be responsible for.
If there are any modifications made to the IVA Proposal at the Creditors' Meeting, you will have an opportunity to accept or decline the changes, before the IVA becomes legally binding.
For an IVA to be legally binding, there must be in excess of 75% of the monetary value of votes cast in favour of the IVA being accepted by the creditors. Once there is an acceptance of the Proposal by the creditors at the Creditors meeting, the arrangement becomes legally binding, whether they voted in favour or not. Equally, should a creditor decide not to vote at all, they would be bound by the decision of the other creditors that did vote.
When the creditors have accepted an IVA it is then recorded in the IVA Register for the full duration of the term.
Address: Room 605-607, China Merchants Building, 152-155 Connaught Road Central (303-307 Des Voeux Road Central), Sheung Wan, Hong Kong