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IVA rejected: what a failed vote actually means

A rejected proposal is not a failed IVA. Nothing has started, nothing binds, and several routes remain open.

Written by The My Debt Cleared editorial teamLast reviewed 23 August 2026Jurisdiction England, Wales & Northern IrelandEditorial policy
If creditors holding 75% by value do not approve the proposal, the IVA simply never begins: no arrangement exists, debts are unchanged, and creditors can resume normal collection. The realistic next moves are a revised proposal answering the objections, or a different route entirely — a DMP, a DRO where the criteria fit, or bankruptcy.

Why proposals are rejected

Usually arithmetic or credibility: a dividend creditors consider too low, a budget they consider unrealistic, missing information, or a creditor’s standing policy. Major creditors vote through agents with published expectations, and an experienced IP drafts to them — which is why outright rejection is less common than approval with modifications.

The next moves

A revised proposal can go back with the objections answered. If the numbers genuinely cannot work, the same facts point somewhere else: a DMP where full repayment is plausible, a DRO where the criteria fit, or bankruptcy where a clean break at known cost beats years of contributions. An authorised adviser re-runs that assessment with the rejection in hand.

Rejection before approval and failure after approval are different events with different consequences — the second costs fees and revives debts; the first costs time.

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