How will the IVA affect my business ?

What is an IVA?

 

Individual Voluntary Arrangement ,a legal contract between you and your creditors.it enables you to cut your debt,s to an affordable level and clear them over a fixed period.

 

I see. Thanks for your reply. Of course, any two or more parties having the legal ability to contract may contract for any legal purpose. All that is required is a meeting of the minds and an exchange of items of value. So, given that definition, when and under what conditions does a meeting of the minds occur? Also, what is the item or items of value being exchanged between the parties?

How do you get your creditors to agree to accept the IVA? What if they don't agree?

And what is the item you propose to exchange between you and your creditors that they will accept or must accept by law?

Why am I strangely reminded of the Individual Voluntary Arrangements just recently issued by the State of California to it's vendors and other creditors. Of course, California isn't the only governmental body that ever used IVA certificates when they ran out of money.

If somebody works for a state government and gets paid with state issued IVAs that ought to teach everybody never to work for a state or a state agency again. If getting one of those when you expected U.S. Dollars isn't enough to teach them never to do anything for the state again then they deserve to get shafted.

Of course, most states have laws that prevent the utility companies from shutting off telephone, electric service or other utilities even though the state fails to pay for those services.

If the state can force people to accept IOUs (er IVAs) then there isn't any reason the common man can't do the same. Or is there??????

 

All You Ask Was What Is A Iva You Didnt Ask For Details,.

 

I don't have to ask for details.
The fact is that de feets has to go over de fence before de tails.
Such ideas as the use of IVA attempt to put de tails over de fence first so they have no basis in law or reality.
The fact is that a creditor has performed his obligations under the terms and conditions of the original contract while the debtor has defaulted on his obligations and therefore has no standing to demand that the creditor do anything further on behalf of the debtor.
Another fact of life is that if wishes were horses then beggars would ride. When a person who has insufficient means to fund his wishes borrows money he is essentially begging from another who has the means to fund the beggar's rides. If the beggar still cannot fund his wishes in a timely manner he has no basis upon which to demand anything more of his creditor. The proposition you are talking about is nothing more than an attempt to demand that the creditor give the debtor more time to pay without any basis or evidence that he will ever be able to pay.
State or federal government have a limited amount of power to force people to accept their worthless IOUs but even their power is limited by their perceived ability to pay in the future.
Fancy sounding ideas are great in theory but in practice they turn out to be worthless.
Now then, you originally said you own a business and you wanted to know how use of IVAs would affect your business. The answer is simple. If you can't pay your bills you will go out of business because you don't have cash and your credit has been ruined because you didn't pay. I'd advise you to worry more about how to generate new revenue and less about how to get out of paying your bills. If you don't pay your bills you most likely won't have a business much longer.

 

wow , such a plain and simple answer why didnt GM think of that.or AIG or FANNIE an FREDDIE.SO SIMPLE.

 

They didn't want plain and simple answers. Plain and simple answers would not have gained them billions of dollars. Anyway those companies and agencies are not plain and simple little businesses. They are the movers and shakers who, because of their economic and political power can make or break the economies of nations world wide. By their very power they have broken the back of the American economy and forced us into a depression that has spread world wide. You mention GM in your list of companies. GM shut down all of it's production facilities in Flint, Michigan. Flint and many surrounding cities and communities are now rapidly becoming ghost towns. GM shut down and their workers could not pay their mortgages or their taxes. Multitudes of homes have been either boarded up or simply bulldozed out of existance. Smaller towns are forced to cut back on essential services. Less police, much higher crime rates. Government can't afford to let that happen so they try to pump billions into the companies but the power of government to pump billions everywhere is also limited. They have no money unless they get it from taxpayers. If taxpayers have no jobs, no income then government goes broke too. Seems like you could use a heaping dose of both economic and legal education. Or do you already know it all and are simply trying to sell an idea whose time will never come?

 

i thought it was the selling of bad debt in the in the mortgage industry that started this ball rolling.i lay the blame on greedy bankers and wall street not the GM. the failing of GM has added strength to the further falling of the economy but they are not the cause.the selling of bad mortgage,s and the desire for greed among people in higher places is the start of this bad economy.what do you expect the family that has been doing all that they were suppose to do (and now because of no fault of there own) have used all savings and are broke.granted there are a lot of people that have not used good judgment but what about the ones that have.do you blame them for being now with out jobs and and broke and homeless. your advice to the op to figure out how to make more money (which im sure they have already thought of) is not an easy one in this economy and probably is of no help.i belief time has almost run out and we will soon see an economy far worst then what we have now. there is a lot of hurt and pain yet to come. arm loans are just starting to re-set and a new wave of foreclosure will soon start along with commercial real estate.

 

It isn't any one single thing that has caused the financial mess we face today. It isn't just the mortgage bankers who are at fault. They were convinced that the housing market bubble could never burst and all they had to do was find more people to buy houses at an ever increasing rate and at ever increasing prices. Their bubble could never burst because if the housing market ever collapsed the economy of the nation could not survive such a massive downfall. They thought they had hit the true glory hole of riches. They had it all figured out. As home values climbed ever higher people could refinance their homes time and time again, making more and more money every time they did.

What happened and is happening in towns and cities all across America is told in this news article about foreclosures and what can happen when foreclosed homes become a glut on the market. It is a strange tale indeed but it is real and authenticated.

Some like to say that GM and the other automakers are not at fault and should not be denigrated because they too are victims of the current depression. Nothing could be further from the truth. Our economic woes are deeply rooted in the actions of such companies. They knew exactly what was going to happen when they pulled up their stakes and went to Mexico under NAFTA starting back in 1969 and later. The idea of NAFTA got started back about that time when Levi Strauss & Company moved their factory from El Paso, Texas over the border to Juarez, Mexico leaving their American workers without jobs.

It only took a couple of years or so for other companies followed suit. Mexico was to become the land of golden opportunity for American manufacturers. They went in droves, leaving American workers in the lurch. They fled America for countries who could offer cheap labor and few if any restrictions.

As more and more companies went elsewhere more and more workers became unemployed and couldn't meet their obligations. Mortgages and credit cards went into default in ever increasing numbers and it is still going on to this day and will continue far into the future.

Another huge factor is the rapidly advancing average age of the American population. Because of the economy fewer and fewer couples are financially able to bring children into the world. The oldsters are dying off and there are insufficient numbers of new workers being born and coming into the workforce. Many nations are beyond the break even point and their populations are declining rapidly with no way to replace those that die off. We are now either near or beyond the breaking point there too. In reality government is far more to blame than GM and all the other manufacturers who abandoned America to go elsewhere. They let it happen. Government opened the floodgates and now they can never be closed again. The entire world will suffer the consequences of bad government decisions and they far more than we.

 

good post and have to agree.i do know first hand the bad practices of the mortgage company,s.i purchased a home three years ago as an investment property.we did a lot of work on it an then put it back on the market for re-sale.the lady who purchased the property had not a pot to piss in.she was on sick pay from her job an seeking disability. the day of the closing she did not have all the closing cost and told the lender she did not know if she could go thru with the deal.they told her not to worry that they could hide the cost in the paper work.knowing very well that she could not afford the house they got it financed anyhow.with in a year she lost the property.

 

I've seen that same story (or nearly the same) posted on many forums all over the net. Its nothing new.

 

Hello All,

Thanks to share your opinion here I really appreciate to all.