When debt piles up and there seems to be nowhere to go but being made bankrupt, many consumers don’t stop to consider that there are a number of debt solutions which can help to avoid the worst case scenario. One of the most popular solutions is to contact an Insolvency Practitioner to help negotiate an Individual Voluntary Arrangement. If there is sufficient debt, a minimum of £15,000, then this may indeed be a viable option. If not, then there is always the option to try for a Debt Relief Order or even a Debt Management Plan.
One of the most important aspects of negotiating an IVA is that an Insolvency Practitioner needs to be the central figure that will schedule meetings with creditors, draw up repayment plans and then file with the courts for an order. Unlike DROs and Debt Management Plans, an IVA is legally binding and once it is ordered by the courts it must be followed to the letter. If not, a creditor can still file bankruptcy against the debtor. For this reason, it is vitally important that a well qualified IP handles the negotiations and has a realistic repayment plan drawn up.
In other words, it is imperative that the IP doing the negotiating forms a repayment plan that can reasonably be followed. Although it might appear that being an IP would mean that anyone could handle the job, it isn’t always the case and according to statistics, most IVAs fail because the repayment plans are not followed either due to lack of finances or the unwillingness of the debtor to pay. A debtfreeme IP will make every effort to negotiate reasonable IVA repayment plans which are acceptable to creditors and debtors alike.