IVA secret 5:
If most of your debt is owed to one creditor then consult them first before you try to do an IVA.
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As 75% (in value) of your creditors have to vote in favour of your IVA proposal there is no point in going ahead with the IVA proposal if that creditor does not already view it favourably.
For example, if you owe £80,000 to five creditors and you have an unsecured loan for £61,000 with one of those creditors then that creditor has 76% of the vote – a sufficient percentage for that creditor to cast the deciding vote on whether you can proceed with an IVA or not.
So you should save yourself time and hassle and consult with them first either about the possibility of an IVA or you might even try negotiating a settlement to your debts (see the options and template letters in the resources section). In any case many IPs stipulate that you should have at least 3 creditors before they will arrange an IVA for you.)