Debt is harder to get rid of with no plan of action. IVA is just one of the options but it’s a very good if you have a lot to repay. If you are still on the fence about IVA, these advantages can help you decide whether to choose it or not.
Advantages of IVA
- You’ll be debt free in 5 Years. This is a realistic estimate as any IVA lasts for a fixed period of time, no longer than 5 years.
- No more interruptions. The telephone Calls and demands for payments will be stopped once the IVA is agreed upon. Your creditors will have to leave you alone by law.
- All interest and late payment charges will be done after confirmation of the IVA. Your creditors cannot add further charges by law.
- There is usually a single monthly payment you can afford to pay after you agree with your creditors on the amount. In some cases, you can even pay a one-off lump sum.
- You will not be forced to sell your home during an IVA. However, you may have to release some money through a remortgage.
- It is possible to keep certain necessary assets in an IVA such as a car. It is also possible to negotiate with creditors to keep other assets for extra IVA payments.
- Once you have successfully completed your arrangement, you will be allowed to borrow money and your credit rating will start to improve.
- You will avoid the specter of bankruptcy and pay back us much as you can reasonably afford on what you borrowed.
- Once agreed, the IVA is legally binding on all the parties involved so you will know exactly where you stand.
- The IVA does allow for variations if your situation changes and if agreed upon with creditors.
- Due to IVA, your creditors will not be allowed to take further legal action against you arbitrarily.
- An IVA is a private matter, there is no publicity in the news.
- Your job may not allow you to become bankrupt so an IVA is more acceptable. It is important to check the terms and conditions of employment to be sure of this.