IVA Glossary
D
Deed of Arrangement
Whenever an individual, simple trader or a small sized company is struggling with accumulated debts which cannot be repaid, a deed of arrangement is the basic solution. Certainly in prior it is advisable to try to settle the debt through a debt management program, or a debt consolidation loan (this loan will be used to pay off all the creditors in full, and then the repayment schedule of the loan must be respected).
A deed of arrangement is in many aspects similar to an Individual Voluntary Arrangement. The number of creditors mustn't be too high, and if the majority of the creditors accepts the proposal stated within a deed of arrangement, this agreement enters into force.
In order to set up a deed of arrangement, the debtor must act as his own financial manager and propose to his creditors a certain fixed sum he is prepared to pay each month in order for his debt to get reduced, until it is fully paid off. Setting up a deed of arrangement is the easiest, simplest and most effective way when an individual deals with debt (there are no extra charges involved, no need for an insolvency practitioner to take over the case, generally a hassle free solution to undertake).
A deed of arrangement is in many aspects similar to an Individual Voluntary Arrangement. The number of creditors mustn't be too high, and if the majority of the creditors accepts the proposal stated within a deed of arrangement, this agreement enters into force.
In order to set up a deed of arrangement, the debtor must act as his own financial manager and propose to his creditors a certain fixed sum he is prepared to pay each month in order for his debt to get reduced, until it is fully paid off. Setting up a deed of arrangement is the easiest, simplest and most effective way when an individual deals with debt (there are no extra charges involved, no need for an insolvency practitioner to take over the case, generally a hassle free solution to undertake).
