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Today's faltering economy
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by: stickystebee
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Today’s faltering economy is affecting consumers worldwide. Many consumers are buried under mountains of debt that they wonder if they will ever be able to pay. For residents of the United Kingdom, one option is an individual voluntary arrangement, also known by the acronym, IVA. This is another option consumers may consider rather than filing bankruptcy.
An IVA consists of a formal repayment plan that is proposed by consumers. In order to do this, consumers must secure the services of an insolvency practitioner to represent them. Once an IVA is drawn up, a creditor’s meeting is held to review the IVA. At this meeting, the insolvency practitioner presents the tentative IVA to a debtor’s creditors. After the presentation, creditors cast a vote as to whether or not to accept the proposed IVA. Presently, in the United Kingdom, IVAs are becoming more popular with consumers seeking resolution for their debt load. Individual voluntary arrangements differ from bankruptcy. Bankruptcies are public knowledge and appear in various newspapers while IVAs do not. However, like a bankruptcy, an IVA does appear on one’s credit report. Both types of arrangements stay on a person’s credit report for six years. While an IVA seems a bit more acceptable given the fact that the debt is repaid, it still have a negative impact as a bankruptcy would.
The duration of an IVA is generally longer than a bankruptcy, although these time frames can vary from consumer to consumer. When an individual declares bankruptcy, they can no longer get credit. But with an IVA, some consumers may obtain credit as long as it is not forbidden as one the terms of their IVA. IVAs are generally less expensive than declarations of bankruptcy. Some consumers assert that the most important benefit of an individual voluntary arrangement is how it impacts ones home ownership. Debtors are given much more control over how their home is figured into their debt plan. With the current trend of today’s economy, it is important for consumers struggling with debt to know their options. Many assume that bankruptcy is the only solution. This is false. Consumers need to explore all avenues available to them and one of these is that of an individual voluntary arrangement or IVA.
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An IVA consists of a formal repayment plan that is proposed by consumers. In order to do this, consumers must secure the services of an insolvency practitioner to represent them. Once an IVA is drawn up, a creditor’s meeting is held to review the IVA.
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