Individual Voluntary Arrangements

Individual Voluntary Arrangements "Along with the economic recession came a large number of individuals who lost a substantial amount of money overnight and were forced to declare bankruptcy. The good news for everyone is that there are numerous alternatives to bankruptcy that they can use to avoid filing for bankruptcy. One must acknowledge that bankruptcy can be extremely difficult to manage, and that the financial restrictions that accompany it make it impossible to resume one's previous lifestyle. Individual Voluntary Arrangements is a very effective alternative to bankruptcy that ensures individuals will not have to face the burden of bankruptcy.Individual Voluntary Arrangements are essentially an opportunity for the debtor to plan a repayment schedule so that he can repay all or part of his debt by rescheduling or rephrasing the loan. This includes the debtor submitting a formal proposal to the creditors he or she owes money to. The debtor must submit the proposal to the court, and an insolvency practitioner will represent the debtor throughout the entire proceeding. In Individual Voluntary Arrangements, both the debtor and creditor will reach an agreement and determine the repayment plan's new terms and conditions. After an agreement has been reached, the debtor must adhere to the terms and can begin making payments. The repayment schedule will be determined based on the debtor's income or frequency of income, so that it is advantageous for both the debtor and the creditor.To obtain Individual Voluntary Arrangements, the creditor must take a number of measures, the first of which is to locate an insolvency practitioner willing to present the case. The debtor will then have to petition the court for an interim order that prevents the creditor from filing a bankruptcy petition. Following this stage, the insolvency practitioner will send the creditor the details of the new proposal. The creditor is free to accept or reject the proposal; once this decision has been made, the insolvency practitioner will oversee the entire process and make regular payments to the creditor.
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