IVA.TV The Benefits of an IVA

IVA Benefits

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The benefits of an IVA (Individual Voluntary Arrangement):

Pros and Cons of an IVA:

Listed below are a number of the Benefits (or Pro’s) of an IVA . It is also important you consider the Implications (Con’s):

  • Reduce your current monthly outgoings on your unsecured debts to a more affordable level
  • Avoids the stigma and more severe affects of bankruptcy
  • It is legally binding unlike an informal debt management plan and as long as you keep to agreed payments will protect you from further action
  • Creditors therefore stop chasing or harassing you for payments
  • A substantial part of your debt may be written-off. You only pay what is affordable after taking account of essential living expenses. The remaining balance at the end of this term is then written-off
  • Interest and charges will be frozen
  • Your home can be protected as part of the IVA proposal (although you will be expected to release any equity in the final year of your IVA through a remortgage or secured loan)
  • If your circumstances change during the IVA the Insolvency Practitioner can elect to hold a Variation Meeting with your creditors
  • You may be debt free in as few as 60 months
  • As part of the IVA review we will ensure you are receiving all of the income to which you are entitled. We can also review your outgoings gas, electric, phone bill to find cheaper providers
  • By entering into an IVA you will find that a lot of the stress and worry you are currently experiencing will be made more bearable
  • If you file for bankruptcy then there are certain public offices that you are not allowed to hold. However, your right to hold public office is not affected by an IVA (some professional careers require you to notify your regulator/employer if you enter into an IVA)
  • An IVA is administered by a fully qualified Licensed Insolvency Practitioner.

Banks and Credit Card Companies will receive more than if you opted for Bankruptcy and for this reason are willing to accept an IVA where Bankruptcy is also a viable alternative.

IVA Note:
Entering into an IVA may adversely affect your credit rating for up to six years from the date of approval.

Your property will be protected within an IVA but you may be required to release all or part of any equity during the period of the arrangement.

Failure to complete the term of an IVA can result in bankruptcy.

For further IVA Information, please click on the relevant links below:

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