How Is an IVA Approved? Creditor Vote and Rejection

How Is an IVA Approved? The Creditor Vote Explained

Your creditors vote on your proposal. It’s approved if creditors holding at least 75% of the debt that is voted agree.

Last updated: November 2026

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Things to know about IVAs

An IVA is a formal insolvency procedure. It must be approved by your creditors, stays on your credit file for six years, fees are taken from your payments, and debts are only written off if you complete it. It isn’t right for everyone.

Read the key risks

Creditors must approve it. An IVA only goes ahead if creditors holding at least 75% of the debt that is voted agree. Your proposal can be rejected.
Credit file and public register. An IVA stays on your credit file for six years from the start date and is listed on the public Individual Insolvency Register while it runs. Getting credit will be harder.
Spending restrictions and annual reviews. You live on an agreed budget for the length of the IVA (usually 5–6 years). Your income and spending are reviewed each year, and your payment can go up.
Fees. Fees are taken from your monthly payments, so less of what you pay reaches your creditors. How IVA fees work.
Your home. Under the current IVA Protocol, your home isn’t included in the IVA and you won’t be asked to remortgage. If your share of the equity is £10,000 or more, the IVA usually lasts six years instead of five.
If it fails. If you can’t keep up payments the IVA may fail, you would owe the remaining debt again, and the supervisor may petition for your bankruptcy.
Write-off only on completion. Remaining qualifying unsecured debts are only written off if the IVA is completed successfully. Secured debts, court fines, child maintenance, student loans and some other debts can’t be included.
Other options may suit you better. A debt management plan, DRO or bankruptcy may be more suitable. IVAs are available in England, Wales and Northern Ireland only; different solutions apply in Scotland.

An IVA only goes ahead if your creditors accept it. Understanding how the vote works helps you know what to expect, and why proposals are sometimes changed or rejected.

The short answer

Your insolvency practitioner, acting as nominee, sends your proposal to creditors.
It needs approval from creditors holding at least 75% of the debt that is voted.
Creditors who don’t vote don’t count towards the total.
If it’s approved, all your included creditors are bound by it.
Creditors can propose modifications, which you can accept or refuse.

What happens before the vote?

Your insolvency practitioner prepares a proposal based on your income, spending, assets and debts. They also write a report for the court and creditors giving their view on whether the IVA is fair and workable. Creditors then get notice of a decision date.

How does the vote work?

Each creditor votes based on the size of their debt. The proposal is approved if at least 75% by value of those who vote are in favour. There’s also a second test: the IVA can’t be approved if creditors holding more than half of the debt owed to unconnected creditors (those who aren’t family or business associates) vote against it.

What are modifications?

Creditors often agree to an IVA on condition of changes, such as a slightly higher payment or a longer term. These are modifications. You can accept or refuse them, and your insolvency practitioner will explain what each one means.

What if my IVA is rejected?

A rejected proposal can sometimes be revised and put to creditors again. If an IVA isn’t possible, other options include a debt management plan, a DRO or bankruptcy.

Common questions

Can one creditor block my IVA?

Only if they hold more than 25% of the debt that is voted, or more than half of the debt owed to unconnected creditors who vote.

How long does the IVA vote take?

Creditors are given notice before the decision date, usually at least two weeks. Many IVAs are approved within a few weeks of the proposal being sent.

Do creditors who didn't vote have to follow the IVA?

Yes. Once it’s approved, it binds all creditors who were entitled to vote, whether or not they did.

How IVA Advice Online can help

Every situation is different, and an IVA isn’t right for everyone. We can look at your income, spending and debts with you and set out the debt solutions you could qualify for, including options other than an IVA. To talk it through, get in touch.