Bankruptcy Alternatives
0 views
Skip to first unread message
Benedict Smythe
Apr 18, 2013, 5:10:02 AM4/18/13
to publish-the...@googlegroups.com
*****************************************************************
Message delivered directly to members of the group:
publish-the...@googlegroups.com
*****************************************************************
Please consider this free-reprint article written by:
Benedict Smythe
*****************************
IMPORTANT - Publication/Reprint Terms
- You have permission to publish this article electronically in free-only publications such as a website or an ezine as long as the bylines are included.
- You are not allowed to use this article for commercial purposes. The article should only be reprinted in a publicly accessible website and not in a members-only commercial site.
- You are not allowed to post/reprint this article in any sites/publications that contains or supports hate, violence, porn and warez or any indecent and illegal sites/publications.
- You are not allowed to use this article in UCE (Unsolicited Commercial Email) or SPAM. This article MUST be distributed in an opt-in email list only.
- If you distribute this article in an ezine or newsletter, we ask that you send a copy of the newsletter or ezine that contains the article to http://www.isnare.com/eta.php?aid=202004
- If you post this article in a website/forum/blog, ALL links MUST be set to hyperlinks and we ask that you send a copy of the URL where the article is posted to http://www.isnare.com/eta.php?aid=202004
- We request that you ask permission from the author if you want to publish this article in print.
The role of iSnare.com is only to distribute this article as part of its Article Distribution feature ( http://www.isnare.com/distribution.php ). iSnare.com does NOT own this article, please respect the author's copyright and this publication/reprint terms. If you do not agree to any of these terms, please do not reprint or publish this article.
*****************************
Article Title: Bankruptcy Alternatives
Author: Benedict Smythe
Word Count: 543
Article URL: http://www.isnare.com/?aid=202004&ca=Finances
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=202004
Easy Publish Tool: http://www.isnare.com/html.php?aid=202004
*********************** ARTICLE START ***********************
Bankruptcy is an option an individual in dire financial difficulty would be forced to take. This is considered as the last debt management tool or resort a debtor could ever take because of the stigma that comes with its implementation. Being published in the London Gazette, made available on line and registered, bankruptcy orders have a far reaching effect. Everybody would be aware of your misfortunes. Bankruptcy will stay in your credit record for a period of 10 years. Its lasting effect could be detrimental to future employment and future financial dealings.
Bankruptcy, however, do have some alternatives. A debtor who is aware of his incapacity to pay debts as they become due should consider entering into a compromise with the creditor and have an informal arrangement to schedule payments. But as it is informal and not legally binding, the creditor on a whim, could renege on the arrangement and demand the full payment of the debt.
Another alternative is the administration order. Instead of paying directly to the creditors, this court-based procedure would require the debtor to make regular payment to the court. However, this is only applicable to debts not more than �5,000 and a regular income is necessary to make the monthly repayments. Irregular payments would result to the cancellation of the court order. In such case, the debtor will be subjected to the restrictions imposed on a bankrupt individual.
IVA is another bankruptcy alternative. In an individual voluntary arrangement, the debtor, with the help of an insolvency practitioner will apply to the court and make a proposal to the creditors to pay all or part of the debt.
What are the workings of an IVA and how is it done? First off is to enlist the help of an authorized insolvency practitioner. The court and the local Receiver�s Office can provide you with a list of names of said practitioners. The court, upon your application will issue an �interim order�. This order will prevent creditors from proceeding with any bankruptcy petitions against the debtor.
The insolvency practitioner, acting in your behalf will present to the court the debtor�s proposal. The insolvency practitioner may deem it necessary for the debtor and the creditors to have a meeting to discuss the proposal. The creditors will then vote on the acceptance of the proposal. It is important therefore that all creditors be informed because the arrangement will not be binding to the creditors who were not able to vote.
An IVA gives a debtor the chance to decide on what to do with his assets and on how to pay the creditors. He may even persuade the creditors to let him retain assets such as the house or the car. This is not so in a bankruptcy order. Unlike in bankruptcy, the debtor will not be asked to pay certain fees so that the overall cost of an IVA is lesser.
An individual voluntary arrangement is an opportunity for the debtor to avoid bankruptcy. But if the IVA is disapproved and rejected by the creditors, the debtor will still be faced with bankruptcy. It is therefore necessary to know if the creditors are likely to approve the proposal.
About The Author: Benedict is a freelance article writer who specializes in Finance and Debt advice. Benedict mainly writes Debt related articles for http://www.wilsonfield.co.uk/
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=202004
*********************** ARTICLE END ***********************
- To distribute your articles go to http://www.isnare.com/distribution.php
- For more free-reprint articles go to http://www.isnare.com
Message delivered directly to members of the group:
publish-the...@googlegroups.com
*****************************************************************
Please consider this free-reprint article written by:
Benedict Smythe
*****************************
IMPORTANT - Publication/Reprint Terms
- You have permission to publish this article electronically in free-only publications such as a website or an ezine as long as the bylines are included.
- You are not allowed to use this article for commercial purposes. The article should only be reprinted in a publicly accessible website and not in a members-only commercial site.
- You are not allowed to post/reprint this article in any sites/publications that contains or supports hate, violence, porn and warez or any indecent and illegal sites/publications.
- You are not allowed to use this article in UCE (Unsolicited Commercial Email) or SPAM. This article MUST be distributed in an opt-in email list only.
- If you distribute this article in an ezine or newsletter, we ask that you send a copy of the newsletter or ezine that contains the article to http://www.isnare.com/eta.php?aid=202004
- If you post this article in a website/forum/blog, ALL links MUST be set to hyperlinks and we ask that you send a copy of the URL where the article is posted to http://www.isnare.com/eta.php?aid=202004
- We request that you ask permission from the author if you want to publish this article in print.
The role of iSnare.com is only to distribute this article as part of its Article Distribution feature ( http://www.isnare.com/distribution.php ). iSnare.com does NOT own this article, please respect the author's copyright and this publication/reprint terms. If you do not agree to any of these terms, please do not reprint or publish this article.
*****************************
Article Title: Bankruptcy Alternatives
Author: Benedict Smythe
Word Count: 543
Article URL: http://www.isnare.com/?aid=202004&ca=Finances
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=202004
Easy Publish Tool: http://www.isnare.com/html.php?aid=202004
*********************** ARTICLE START ***********************
Bankruptcy is an option an individual in dire financial difficulty would be forced to take. This is considered as the last debt management tool or resort a debtor could ever take because of the stigma that comes with its implementation. Being published in the London Gazette, made available on line and registered, bankruptcy orders have a far reaching effect. Everybody would be aware of your misfortunes. Bankruptcy will stay in your credit record for a period of 10 years. Its lasting effect could be detrimental to future employment and future financial dealings.
Bankruptcy, however, do have some alternatives. A debtor who is aware of his incapacity to pay debts as they become due should consider entering into a compromise with the creditor and have an informal arrangement to schedule payments. But as it is informal and not legally binding, the creditor on a whim, could renege on the arrangement and demand the full payment of the debt.
Another alternative is the administration order. Instead of paying directly to the creditors, this court-based procedure would require the debtor to make regular payment to the court. However, this is only applicable to debts not more than �5,000 and a regular income is necessary to make the monthly repayments. Irregular payments would result to the cancellation of the court order. In such case, the debtor will be subjected to the restrictions imposed on a bankrupt individual.
IVA is another bankruptcy alternative. In an individual voluntary arrangement, the debtor, with the help of an insolvency practitioner will apply to the court and make a proposal to the creditors to pay all or part of the debt.
What are the workings of an IVA and how is it done? First off is to enlist the help of an authorized insolvency practitioner. The court and the local Receiver�s Office can provide you with a list of names of said practitioners. The court, upon your application will issue an �interim order�. This order will prevent creditors from proceeding with any bankruptcy petitions against the debtor.
The insolvency practitioner, acting in your behalf will present to the court the debtor�s proposal. The insolvency practitioner may deem it necessary for the debtor and the creditors to have a meeting to discuss the proposal. The creditors will then vote on the acceptance of the proposal. It is important therefore that all creditors be informed because the arrangement will not be binding to the creditors who were not able to vote.
An IVA gives a debtor the chance to decide on what to do with his assets and on how to pay the creditors. He may even persuade the creditors to let him retain assets such as the house or the car. This is not so in a bankruptcy order. Unlike in bankruptcy, the debtor will not be asked to pay certain fees so that the overall cost of an IVA is lesser.
An individual voluntary arrangement is an opportunity for the debtor to avoid bankruptcy. But if the IVA is disapproved and rejected by the creditors, the debtor will still be faced with bankruptcy. It is therefore necessary to know if the creditors are likely to approve the proposal.
About The Author: Benedict is a freelance article writer who specializes in Finance and Debt advice. Benedict mainly writes Debt related articles for http://www.wilsonfield.co.uk/
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=202004
*********************** ARTICLE END ***********************
- To distribute your articles go to http://www.isnare.com/distribution.php
- For more free-reprint articles go to http://www.isnare.com
Reply all
Reply to author
Forward
0 new messages