IVA: Why need 2 creditors with 3 lines of credit?

The_Swerve

Hello,
Just a quick question...why is a part of the criteria for an IVA that you need 2 creditors with 3 lines of credit...why cant you just have 2 creditors (with just the 2 lines of credit)?

I cannot think of a good reason!!!!!

Ta

have a good weekend

spaceman5

i dont know if this is the reason, but as a stab in the dark, it may have something to do with the 75% ruling to approve an iva, as in you need 75% of your creditors to vote yes for your iva to be accepted, so for instance you only had 2 lines of credit, if 1 said no, and the other said yes, then that would be 50:50, so you would need 3 lines of credit, then if 2 said yes, and 1 said no, that would be the 75% needed to get your iva accepted.

I am probably way of the mark, but it is the only logical thing i can think off

zenmaster

spaceman5 wrote: »

i dont know if this is the reason, but as a stab in the dark, it may have something to do with the 75% ruling to approve an iva, as in you need 75% of your creditors to vote yes for your iva to be accepted, so for instance you only had 2 lines of credit, if 1 said no, and the other said yes, then that would be 50:50, so you would need 3 lines of credit, then if 2 said yes, and 1 said no, that would be the 75% needed to get your iva accepted.

I am probably way of the mark, but it is the only logical thing i can think off

No. That would be 66.6%.

4 lines would meet that criteria, so it must be some other reason.

FoggyBrain_2

It's British Law --- no rhyme nor reason !!!!

Giggles_Fairy

It is 75% by value not by number of creditors, it matters how much is owed to the creditors.

spaceman5

like i said, it was a stab in the dark

The_Swerve

Thank you for you replies.

I have done some further reasearch on the matter. Apparently, in theory, you can do an IVA with just one creditor, its just that one creditor would have 100% of the vote. I guess it would come down to whether it would be worth doing for just one creditor, especially with a lower debt level..

Cheers