subject: Iva Debt Management: Finding Out Means To Clear Multiple Loans [print this page] Individual Voluntary Arrangement debt management is very helpful for the section of the borrowers who takes loans from different sources and cannot pay back the borrowed amount in time. This happens as these people have singular source of earning, an earning which is not enough to meet up the daily demands of life and living. They are tagged with defaults, arrears, bankruptcies etc. The lenders of the financial market reject loan application of these borrowers when they go through their respective credit history. Against this spectrum, these persons clearly understand that they have been trapped by debts. They do not understand what they should do to release them from such kind of fetters. The idea of Individual Voluntary Arrangement debt management has been designed to do some things which would work to favor the affected people.
The gulf between the lenders and their respective borrowers is to be bridged up. This is what remains behind IVA Debt management. It is the time to create a legal contract. Individual Voluntary Arrangement debt management offers some advices which the lenders and their borrowers must oblige. Advices of the Individual Voluntary Arrangement debt management are very simple, and those may be framed in the following steps:
1. The borrower provides the Individual Voluntary Arrangement practitioner with the documents which contain details of loans advanced to them time to time by different lenders.
2. The Individual Voluntary Arrangement practitioner learns the actual state of the borrower after studying the materials submitted by the borrower.
3. Then, a proposal is created by the Individual Voluntary Arrangement practitioner for the borrower. This proposal contains definite advices for the borrower to clear the entire outstanding.
4. The borrower and his lender are to listen to the Individual Voluntary Arrangement practitioner jointly and give their consent in favor of the clauses of the contract prepared by the IVA practitioner.
The contract or agreement scripted by the Individual Voluntary Arrangement practitioner has a life of five years only. This is actually the best possible way in which the borrower, in such a situation, may pay back his total loans within a scheduled time.
The borrower must fulfill the following conditions for the success of the scheme resulted from the Individual Voluntary Arrangement debt management:
1. The borrower must have taken the loan amount in unsecured variant.
2. The borrower must have dependable monthly income.
3. The borrower must have secured the finance from not less than three lenders.
