Creditors Meetings Called? Here’s What You Need to Know Immediately

Received notice of a creditors meeting and worried about what happens next?

The very first thing you need to know is that, despite the name, a creditors meeting isn’t actually a meeting — or at least not one where everybody sits in a room together discussing your company. It’s a formal voting process where your creditors receive a detailed proposal outlining how much you can afford to repay them and over what timeframe.

They then review these terms and vote on whether to accept them. The “meeting date” is really just the deadline by which all votes need to be submitted. Creditors can send their vote at any stage after receiving the proposal details. Most will not even attend a virtual call, let alone a physical gathering. Instead, they’ll simply email their vote after reviewing the proposal documents.

Secondly, not only will creditors often not attend, but you are not required to be present either. Plus, if your proposal is reasonable, it will usually be approved.

This guide explains exactly how creditors meetings work, what creditors look for when voting, and what to expect at each stage of the process.

 

Why Is There a Creditors Meeting?

Creditors meetings exist to give your creditors a say in what happens next when your company or you personally cannot pay debts in full.

Whether you’re proposing a Company Voluntary Arrangement (CVA) to restructure company debts while continuing to trade, an Individual Voluntary Arrangement (IVA) to manage personal debts through affordable monthly payments, or proceeding with liquidation to wind up the company, the people you owe money to get to vote on the terms being offered.

This is only fair. If creditors are being asked to accept less than they’re owed, write off interest, or wait years for repayment, they deserve the opportunity to review the proposal and ensure it’s realistic and represents the best possible return on what they’re owed.

How Does the Voting Work?

Each creditor gets a vote based on how much they’re owed. If you owe Creditor A £50,000 out of a total debt of £100,000, they control 50% of the vote. Creditor B, owed £25,000, controls 25%.

For CVAs and IVAs, you need 75% approval by value of debt. For liquidations, it’s usually a simple majority, though this depends on what’s being voted on.

This means the largest creditors have the most influence. If your biggest creditor approves, you’re usually in good shape.

How Long Does the Creditors Meeting Process Take?

The timeline varies depending on the type of insolvency process:

Company Voluntary Arrangement (CVA)

Your insolvency practitioner sends the proposal to creditors, who get at least 14 days to review it. The meeting date is set, often alongside a shareholders meeting, and creditors vote before or on the meeting date, before results are shared. 

Individual Voluntary Arrangement (IVA)

Creditors get up to 28 days’ notice before the meeting and can submit votes anytime during this period. The meeting can be adjourned for up to 14 days if needed, with the result being announced on the meeting day.

Administration

The initial creditors meeting must happen within 10 weeks of the administration order. Creditors need at least 14 days’ notice, and further meetings can be called as needed.

Creditors Voluntary Liquidation (CVL)

The meeting happens after the shareholders meeting, usually directly after or within 14 days. Since 2017, virtual meetings are the default unless creditors request otherwise.

What Happens at the Meeting?

If there is a virtual meeting on the day — which is optional — here’s what typically happens:

The insolvency practitioner presents the proposal, explaining the company’s financial position, what’s being proposed, and why it’s the best option available. Creditors can then ask about the financial position, the proposal terms, or any concerns they may have. 

While many votes will have been submitted prior to the meeting, any remaining votes are collected before the chair announces whether the proposal has been approved, rejected, or approved with modifications.

In a creditors voluntary liquidation, creditors also vote on whether to keep the appointed insolvency practitioner or choose their own. They can also form a liquidation committee to monitor the process.

What Creditors Look For

When deciding how to vote, creditors ask themselves four key questions: 

• Is the proposal realistic? Can you actually afford the payments and are projections believable? 
• Is it fair? Will they recover more through this arrangement than through bankruptcy or liquidation? 
• Is it sufficiently detailed, with clear financial explanations and proper projections?
• Has the company been transparent, or are there concerning gaps in the accounts? 

If your proposal satisfies these criteria, approval is likely.

Three Possible Outcomes

After creditors vote, there are three possible outcomes:

• Approved: At least 75% of creditors (by debt value) have accepted your proposal. The arrangement becomes legally binding and you begin making the agreed payments. This is the most common outcome when proposals are realistic.
• Approved With Modifications: Creditors agree in principle but want changes — typically longer payment terms, higher monthly payments, or additional reporting requirements. The meeting can be adjourned while you consider the changes.
• Rejected: If the proposal didn’t receive sufficient votes, it doesn’t have to be the end. Your insolvency practitioner can help you modify the proposal, explore alternative insolvency options, or negotiate directly with the major creditors who voted against it.

Important Differences by Process Type

The basic creditors meeting process is similar across all insolvency procedures, but there are some key differences worth understanding.

Company Voluntary Arrangements (CVAs) require approval at two separate meetings — creditors and shareholders. For creditor approval, 75% by debt value must vote in favour. Critically, a second vote excludes “connected parties” (directors, associated companies, and family members). If more than half of unconnected creditors vote against the proposal, it fails, preventing directors from forcing through arrangements that benefit them over external creditors.

Individual Voluntary Arrangements (IVAs) follow a simpler process with just a creditors meeting required. Once approved, you typically make monthly payments for five to six years. Your insolvency practitioner handles all creditor communication throughout.

Creditors Voluntary Liquidation (CVL) meetings serve a different purpose. Rather than approving repayment terms, creditors vote on whether to accept the proposed liquidator or appoint their own, and whether to form a liquidation committee to oversee the process. Since 2017, physical meetings aren’t required as, unless at least 10% of creditors request one, virtual meetings are now standard.

What Happens After Approval?

Once your arrangement is approved, several protections kick in immediately.

For IVAs and CVAs, the arrangement becomes legally binding on all parties. Creditors must stop chasing you for payment, interest and charges are frozen, and you begin making your agreed monthly payments with breathing space to repay at the manageable rate you’ve proposed.

For liquidations, the liquidator begins realising assets and distributing funds to creditors according to the legal priority order. The company is wound up, and directors are released from certain liabilities (depending on their conduct during the company’s operation).

For administrations, the administrator works to either rescue the company as a going concern or achieve better returns for creditors than immediate liquidation would provide. A creditors committee may be formed to oversee progress, and regular reports keep all parties informed.

Common Worries (and the Reality)

“What if my biggest creditor votes no?” That’s a problem. They might have enough voting power to block the proposal. However, it is rare that such an occasion is a shock. Your insolvency practitioner will usually speak to major creditors prior to submitting the proposal to gauge their position.

“Can creditors ask me questions directly?” Your creditors are entitled to ask any questions they wish during the process. However, these queries will be directed to your insolvency practitioner, not you. 

“What if HMRC votes no?” HMRC is often a major creditor. If they’re concerned about the proposal, your practitioner will usually negotiate with them beforehand to address their issues.

“Will this be public?” CVAs and CVLs are registered at Companies House, so yes, they’re public. IVAs are on the Individual Insolvency Register. Administration is also public.

“Can I change my mind after approval?” Not easily. Once approved, the arrangement is legally binding. There are limited grounds for challenging it, usually only if there was a serious procedural error.

“Can the meeting be delayed?” Yes. Meetings can be adjourned for up to 14 days from the original date. This happens when creditors need more time to review the facts, they have questions that need answering, modifications are being negotiated, or there are technical issues with the voting process. An adjournment isn’t necessarily a bad sign — it just means creditors want more time or information before deciding.

What Your Insolvency Practitioner Does

Your insolvency practitioner is your advocate throughout the creditors meeting process.

Before the meeting, they prepare the proposal, contact major creditors informally to gauge their position, answer creditor queries, and make sure all documentation is correct. 

During the meeting, they will chair proceedings (or arrange a chair), present the proposal, answer questions, tally votes, and announce the outcome. 

After the meeting, they inform you of the result, implement the arrangement if approved, discuss any requested modifications with you, and advise on next steps if the proposal is rejected.

Tips for a Successful Creditors Meeting

To maximise your chances of approval, follow these principles: 

• Be realistic about what you can afford. Creditors easily spot lowball proposals and will reject them. 
• Provide detailed, transparent information about your financial position. Comprehensive proposals build trust. 
• Your insolvency practitioner should engage with major creditors before the meeting to understand and address their concerns in advance. 
• Make yourself available by phone on the meeting day to hear the outcome and discuss any modifications. 
• Above all, don’t hide anything. Full disclosure is essential, as creditors discovering hidden assets or income later can void the entire arrangement.

Quick Questions 

• How long before a creditors meeting are creditors notified? For creditors, you can expect to be notified 14-28 days prior depending on the type of insolvency. IVAs give up to 28 days, CVAs at least 14 days.
• Can I speak at the creditors meeting? You can, but you don’t have to. Usually your insolvency practitioner speaks on your behalf. If creditors have specific questions for you, your practitioner will relay them.
• What if a creditor doesn’t vote? Non-votes don’t count towards the total. So if a creditor doesn’t vote, it doesn’t affect whether you reach the 75% threshold.
• Can creditors change their vote? Yes, up until the meeting concludes. They can change or withdraw their vote anytime before the final tally.
• What’s a liquidation committee? A group of creditors (usually 3-5) who work with the liquidator to oversee the process and make certain decisions. It’s optional and only formed if creditors want one.
• What if creditors request unreasonable modifications? You don’t have to accept them. You can reject modifications and either rework the proposal or explore other options.
• How many creditors typically attend the meeting? Very few. Most submit their votes in advance. Attendance is usually just the insolvency practitioner and perhaps one or two creditors with questions.
• What happens to creditors who voted against an approved proposal? They’re bound by it anyway. Once 75% approve, it’s binding on all creditors, even those who voted no (or didn’t vote).
• Can the meeting outcome be challenged? Yes, but only on limited grounds like procedural errors or unfair prejudice to creditors. Challenges must be made within 28 days and are rare.
• Do secured creditors vote in creditors meetings? Usually not, unless you’re proposing to affect their security. Secured creditors often stand aside from the process as they can enforce their security separately.
• Do I have to attend the creditors meeting? No. You have no obligation to attend a creditors meeting, and neither do your creditors. In fact, most will not attend the meetings, instead opting to simply submit their vote by email after reading the proposal.

How We Can Help

If you’ve received notice of a creditors meeting or you’re considering insolvency options, we can guide you through the process.

We’ll explain what to expect at each stage, help prepare a strong proposal that maximises your approval chances, handle all creditor communication, support you through the voting process, and advise on next steps, whatever the outcome.

The creditors meeting is a routine part of the insolvency process. With the right preparation and realistic expectations, most proposals are approved.

Get in touch today for a confidential discussion about your situation with a member of the Inquesta team of specialist insolvency practitioners. Alternatively, call 0800 093 4604 to speak to somebody today.