It is only unsecured creditors who take part in voting on the establishment of a voluntary arrangement. Any creditor with security (usually your bank) will not be entitled to vote for its debt to the extent that the debt is secured.
By and large, creditors will regard the situation entirely pragmatically. If they feel that the debtor (be it an individual or a company) is making an honest attempt to achieve the best for creditors then, provided the creditor would not be better off in bankruptcy or liquidation proceedings, they are likely to vote in favour.
However, a full and frank disclosure of the debtor’s assets must be made (indeed, it is a criminal offence not to) and the debtor must make a genuine attempt to make a decent offer to the creditors. As well as this, the attitude of creditors will be affected by their relationship with you and whether they see the voluntary arrangement as reasonable and credible. Your licensed insolvency practitioner can help in what are often complex and difficult negotiations.
Next Steps
If you want to find out anything further about this topic then please feel free to call on 0330 236 9930, 0330 236 9938 or 07961 116321. All conversations will be in strict confidence. You can also email vee@navigatebr.com
This article is for information and interest only. It is not a substitute for full professional advice, which will take in to account the specific and individual circumstances. Navigate Business Recovery Limited cannot accept any responsibility for any loss arising because of any person or organisation acting or refraining from acting on any information.
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