IN MORE DETAIL
- A brief history of why the finances have gone wrong
- A projection for the future
- A snapshot of all the assets and liabilities today (and)
- A proposal to creditors to pay them back something
Often the return to creditors is less than 100p in the £ so that creditors have to wait, freeze interest and don’t get all their money back. The alternative, however is bankruptcy, so it is usually accepted by creditors.
“INDIVIDUAL VOLUNTARY ARRANGEMENTS CAN BE USED BY PEOPLE IN BUSINESS OR PRIVATE INDIVIDUALS TO FREEZE THEIR LIABILITIES OR DEBTS.”