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Bankruptcy is a kind of a problem if you are not well aware of it. You know you can always avoid this by searching for different alternatives. So many different alternatives have been defined for supporting the debtors in their worst of all financial conditions. They can be different according to the different nature of the debtors’ conditions of the debt issues. Many people have no idea about them because they are not well aware of them. They have been advised by people around them that bankruptcy is the only option. However, this is a common phenomena that now people are more aware of the conditions they are facing and how they can reach to a good and wisely made decision about how to solve such issues. They have the search capabilities over the internet and they do not need any guidance on the debt issues they face apart from just running an online search on the internet through different blogs and portals like the online discussion boards, online forums and the informatory websites. Options against bankruptcy If they search thoroughly, they will find that they can rely on either of the following alternatives to bankruptcy: • IVA • Debt management • Debt consolidation • Debt negotiation • Debt snowball management technique • Debt relief order • Trust deeds etc IVA- What does it do? IVA or the individual voluntary arrangement is a kind of a legal document that is proposed by the insolvency practitioner (IP). He files for the proposal in a court, and then the creditors are called for a meeting. This meeting is about the fact that the creditors have to agree to the IVA proposed by the IP according to the condition of the debtor he/she serves. The proposal for the IVA contains all the details of how the debtor is facing financial issues and is practically insolvent. If the creditors (75%) are willing to vote for a yes in the favor of the debtor, the IVA becomes legal. Else, the creditors can bug the debtor in any way they want. The IVA allows the debtor to be free of the tensions as follows: Advantages 1) The interest rate amount applicable on the loan amount is ceased. 2) The installments for the payment of the loan amounts are lowered down to facilitate the paying capacity of the debtor every month. 3) The creditors cannot ask for any extra money or bug the debtor in any case if they are under IVA. 4) At the end of the IVA term (usually one year min), the outstanding debts are written off. However, to get an IVA the following conditions apply on the proposal filer: Conditions 1) IVA can only be obtained if the debtor has not availed it in his credit history of past 6 years. 2) IVA can only be obtained by the citizens of UK or those who have at least lived in UK in North Wales for three years minimum. 3) IVA applies on a debt amount more than 15000 pounds. To avail this option, you can go to any IP or an accountant for bankruptcy near your vicinity in any court who deals in such topics. Author Bio: This post is written by Stuart Mclash who is a financial advisor. If you are looking for more information on bankruptcy, debt relief plans and on iva then you can visit http://www.goodbye2debt.co.uk/
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