subject: Three Views of an Individual Voluntary Arrangement [print this page] Three Views of an Individual Voluntary Arrangement
The actual IVA process engages three primary groups or individuals . First of all there is the person who is insolvent; secondly you have the unsecured lenders from whom the debtor has borrowed funds which they simply cannot now settle (completely ; thirdly there is the Insolvency Practitioner (IP) whose role entails being an honest broker between the debtor and the creditors. To get an IVA to succeed, each one of these three parties are required to work with each other in trusted and transparent relationships.
The Debtor's Purpose and Perspective
To successfully regain control of personal finances
To get rid of the ceaseless worry about being able to pay bills
To curtail the constant letters and phone calls from loan providers
To retain onto the family home
To freeze fees and penalties and interest and prevent the indebtedness climbing
To counteract - whenever possible - neighbours, friends and relations from getting to know financial problems
To stop the humiliation and stigma of bankruptcy
To maintain a position and/or to continue in business
To pay back lenders as much as possible
To finish the IVA process within a reasonable space of time
The Creditor's Purpose and Perspective
To recoup as much as is sensibly practicable of the monies owed by the person in debt
To avoid taking on the expense of making the borrower bankrupt
To avoid the direct and indirect expenses of recovering the bad debts
To make reasonable bad debt provisions
To care for customers reasonably and thereby look after and enhance the company's reputation
To minimise losses attributable to bad debts
The IP's Goal and Viewpoint
To allow the borrower to cope with his or her financial issues
To counsel the debtor completely and truthfully on all available alternatives
To find the best remedy for the borrower in line with insolvency legislation
To ensure that IVA proposals are feasible and fair to the debtor and creditors
To have a reasonable expectation that the debtor will comply with the provisions of the proposal
To put the debtor's proposals to lenders for their consideration
To act as an trusted broker between the borrower and creditors
