Is there any reason an IVA application would be denied? I really don't want to have to declare myself bankrupt and am pinning all my hopes on an IVA. I really hope I can get one.

Edit Subject

Each case is unique and there is no hard and fast rule as to why your IVA application may or may not be accepted.  However, below are a few common reasons why an IVA proposal may be rejected by your creditors:

• Unsustainable payment proposal - based on the figures you have provided, should the creditors believe you will be unable to maintain the payments throughout the IVA period, they may choose to reject your proposal.

• Own Criteria – some creditors have their own criteria which may result in your proposal being rejected. An example of this is one creditor who is known to often reject proposals where a debt is less than 12 months old.

• High repayment desires – based on the figures you have provided, creditors may feel you can afford a higher repayment plan than suggested in your proposal. On this basis, they may reject the current plan. In such circumstance, our team will always speak with the creditors direclty to try and arrange a solution or compromise. In most cases this can be achvieved without any distress or upset to you and we are proud to confirm we have a 98% success rate of proposals being approved. In those cases where an IVA proposal cannot succeed we will, where appropriate, try to help you with a debt management plan instead.

• Approval - 75% of your creditors (who decide to vote - calculated as a proportion of your total unsecured debts – i.e. debts NOT secured on your home) must vote in favour of your proposal.
  
  This generally means you should have three or more unsecured creditors to make this possible.
  
  

Generally, ClearDebt will not allow a proposal to go forward that is likely to be rejected. More than 98% of ClearDebt proposals are approved by creditors.