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IVA : What Is A Variation Meeting ?
For those people who have come across the term 'IVA Variation Meeting', here is a brief explanation of how a variation meeting may be required within an Individual Voluntary Arrangement (IVA).
When a person in serious financial difficulties has chosen an Individual Voluntary Arrangement (IVA) as their preferred debt solution, they will have agreed to the terms and conditions of their Individual Voluntary Arrangement (IVA) at their IVA creditors meeting.
However, a change in the debtor's circumstances may mean that the original terms of the IVA proposal can no longer be adhered to, but may not necessarily mean that the Individual Voluntary Arrangement (IVA) has to be considered failed.
If the debtor is able to make a revised offer to their creditors then an IVA Variation Meeting can be convened, to allow creditors to consider the proposed IVA variations.
The IVA Supervisor will prepare a report to the creditors, giving details of the change in the debtor's circumstances, together with an explanation of why the original proposal is no longer achievable.
The report will contain details of the revised offer to creditors and a statement showing the anticipated return to creditors. The report and statement will compare the original return with the revised offer, and the Individual Voluntary Arrangement (IVA) Supervisor will comment and give their opinion that the IVA variation represents a fair offer to the creditors.
The Individual Voluntary Arrangement (IVA) Supervisor is required to give a minimum notice period to creditors of 21 days to the creditors of the variation meeting, although this period can be as much as 28 days depending on the terms of the Individual Voluntary Arrangement (IVA) proposal.
A majority in excess of 75% of the creditors voting is required for the Individual Voluntary Arrangement's (IVA's) variation to be approved.
For further information on Individual Voluntary Arrangements (IVAs) click here or call myIVA-Adviser.com for free on 0800 088 7503 to speak to one of our IVA specialists.
