Approval
November 2nd, 2009 by admin
The key aspect of getting an individual voluntary arrangement approved is to make sure the proposal offered to the creditor is better than what they would receive via bankruptcy. The minimum that creditors will normally approve for an individual voluntary arrangement is twenty-five pence for the pound. In order for the individual voluntary arrangement to be approved, 75% of the creditors must vote in agreement of the proposal. If approval doesn’t occur, their is a high probability that the debtor will be made bankrupt. It is important to remember that n individual voluntary arrangement is a legally binding agreement between the creditors and the debtor.
