Consolidate your debt with an IVA (Individual Voluntary Arrangement)
An IVA, standing for Individual Voluntary Arrangement, can be the right solution for those people dealing with serious debt issues. Other wise said, you should opt for IVA in case you have at least $ 15,000 of unsecured debt. It is recommended to opt for IVA when you have such a debt and your monthly income does not allow you to put up with it. The Individual Voluntary Arrangement is a much better option than bankruptcy. It is nothing else but an agreement concerning your creditors and yourself. Every little detail involved with this agreement is 100% in accordance with the implementing law. Through the agency of IVA you have to make payments that your budget can afford within a period of time of 60 months. In case of financial difficulties this is one of the best solutions to recover from a debt. At the end of this period you can consider yourself a free person (from a financial point of view) although you have not paid the entire debt (from a logical point of view). The good news is that you are allowed to forget about your remaining debt because you do not need to make any other payments. All your debt that your previous payments have not covered is going to be written of on behalf of your agreement/voluntary arrangement. This means that you will suddenly find yourself completely out of debt. IVA is nothing else but the perfect opportunity of getting rid of a several financial problems.
Anyway, a professional Insolvency Practitioner, I.P. for short, will be the perfect guide in case you are interested in opting for Individual Involuntary Arrangement. The I.P. will thoroughly analyze your financial situation and possibilities after having taking into consideration your monthly expenses. This way he can make a realistic estimation about how much you can actually reimburse monthly. When all these important details have been clarified he will be able to start negotiating with your creditors an advantageous financial arrangement. An extremely positive aspect of this arrangement is represented by the fact that you are not going to witness any increase of the afferent interest or charges. Another extraordinary piece of news is related to the fact you are not going to deal directly with debt collectors anymore. Your I.P. will fulfill all these unpleasant tasks for you, communicating them all the necessary information. You will also be sheltered from any legal or bankruptcy actions. Anyone would agree this is an irresistible offer. It is extraordinary to find out some peace at least, after all those terrible torments you have been put through. All you have to do is carefully respecting your payments schedule and you will push your stress away. There is nothing but a matter of time what it is about to come: total financial freedom. When the period of 5 years has passed you will be finally free from any financial bonds or restrictions. It is worth fighting for this. However there are some obstacles to overpass before having your Individual Voluntary Agreement approved. As it is legally recognized you will have no other choice but strictly obeying the rules. Once your application has been granted an Interim Order by the court, your creditors will have no right to claim anything from you (in a direct manner). Subsequently, a voting meeting will be organized (having IVA as topic) and it is compulsory for your creditors to participate. They have to vote in accordance with their opinion about the IVA. In case one of your creditors gives a favorable vote to the IVA, it will be definitely approved. On the other hand, if one of your creditors gives an unfavorable vote to the Individual Voluntary Agreement, the voting meeting is going to be suspended for some other date when those creditors who have not been there to vote will be invited to do it. However, there is one major condition you have to take into consideration. The meeting will be suspended only if the respective creditor represents a percentage lower than 25% of your total debt. On the contrary, as long as the creditor represents a percentage higher than 25% of your total debt, you can kiss good bye your Individual Voluntary Agreement. It will have successful results only if those creditors representing 75% of your total debt vote on its favor. In case some of your creditors have not expressed their opinion by voting, they will be considered as having voted for the above-mentioned financial arrangement. It is good to know that as long as the Individual Voluntary Agreement is valid your situation will be periodically analyzed from a financial point of view. It is of out most importance not to take the Individual Voluntary Arrangement for Debt Management plan. They may have the same purpose, but they are different because they function differently. The truth is that the great majority of people have not even heard of Individual Voluntary Agreement. It differs from Debt Management Plan because it is more complex, first of all. The IVA involves an Insolvency Practitioner to coordinate its development process. As a matter of fact he functions as an intermediary between the debtor and the creditors. More than that, the respective creditors are supposed to vote for the fate of the Individual Voluntary Agreement. In conformity with the IVA rules, the debtor is responsible with making the previously settled payments towards the IP. Afterward, the IP will distribute the money, on his turn, to the creditors, paying attention at the same time at the main terms and conditions involved with the IVA. In accordance with the agreement, the debtor will make payments periodically. As a matter of fact he must do this until the Individual Voluntary Arrangement is finally completed. It is very important for the debtor to be disciplined and respect his obligations concerning the regular payments he has to make. In case he simply cannot cope with the payment issue, the IVA will be not functional any more.