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The individual voluntary arrangement is one of the many cheap yet effective alternatives to the bankruptcy filing. Because bankruptcy filing is very difficult and not in the nature of every debtor to withhold, the best way is to find the better ways to let the debt issues out of hand. Although the concept of bankruptcy and Iva are not mutually exclusive, and the worst condition in the individual voluntary arrangement can be that it leads you to bankruptcy, but then again, at least it helps you avail the debt help in a sober and less cost manner. Because IVA is relatively a new concept, the debtors search for it more often. This is once, because it has a good way to let the debtors out of trouble and second, it is less costly. The IVA is applied on all those debts that are secured, no debtor with an unsecured debt can apply for it. The features of the IVA are as follows. An IP- insolvency practitioner is involved in the process all the way for filing for an IVA and until the moment when a debtor is completely out of the debt issue she has faced all his life. How the Insolvency practitioner works The IP will ask you about the financial disorder details that you are facing and will analyze your status of payments. He will define what amount you can pay for the loans out of your discretionary income. This process works the same way as that of the debt management plan from the different debt management companies. The IVA IP talks to the creditors on your behalf, and tell them your condition, because this is a legal documentation process, the creditors have to abide by the rules that are laid in front of them. The amount to be paid and the rate of interest that one debtor can afford, with the payment time period. After this, the creditors cannot take any action against you or worse, sue you for the actions you have taken. Apart from that, they have to wait for that much amount of time in which you can pay them the loan amounts with the nominal interest rates on the loans applicable by the help of identifying the market rate of interest. After the payments have been made, the creditors cannot bug you as they sign a document, which states that they have their full amount of loans received successfully with interest rates on behalf of the debtor in due course of time. Other alternatives If you want to find out more on this subject or any other alternative to bankruptcy you can either log on to the website, www.goodbye2debt.co.uk, or you can take information out from the many blogs and the forums on the internet. They have all the information on every single aspect of the alternatives, which can help you out in solving all your debt issues. To find out which companies near where you are living, provide such alternatives, you can download information from different websites of the companies made by their consultants or call the people you already know have taken help form them.
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Individual voluntary arrangement, IVA,
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