Lessons from the UK on bankruptcy management
As of now, most Americans have only two choices - file for bankruptcy or enroll onto a creditor controlled debt management plan. In the UK, while bankruptcy is an option, many consumers can also seek to enter into a legally binding contract with their creditors called an Individual Voluntary Arrangement (IVA), which is supposed to be a ‘better than bankruptcy’ commercial proposal put forward by an individual to their unsecured creditors. Livearticles.com reports:
Typically IVAs constitute a 5-year monthly repayment proposal based on the realistic affordability of the individual. A typical proposal would be offering a minimum of 25% of the debt outstanding to be repaid over a 5-year period.
Read more: Can The USA Learn From The UK When It Comes To Bankruptcy
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