Are you looking for some valuable information on IVA? If yes, you’ve come to the right spot. Before you consider IVA, it is important that you weigh the pros and cons of this option. However, before we move forward to discuss the crux of this discussion, it is important, to begin with, a formal introduction.
What is Individual Voluntary Arrangement?
In simple words, the individual voluntary agreement is an agreement between you and the creditors. This means you get to pay off the debts at an affordable rate. An insolvency practitioner will help you make payments. Therefore, if you have an IVA and decide to pursue it in the long run, chances are that you will never regret this choice. We will sift you through the best IVA advice here.
Advantages of IVA
- For your information, IVA is the easiest way to avoid any bankruptcy proceedings.
- It is a good method to get rid of property repossession.
- Through IVA, you are obligated to make a fixed payment at one time.
- You can get rid of your debts in the next 5 years if you have signed for an IVA right now.
- If you continue to make the monthly payments on time, your creditors won’t be allowed to take any legal actions.
- You can get rid of stress and anxiety by signing up for the IVA.
- As soon as your IVA is approved, the interest amount on the debt is frozen.
- You can save money by having a fixed interest on the current debt through the IVA.
- IVA helps you in having a better quality of life since you can carry on with the monthly expenses and not worry about paying any hefty costs on the debt amount.
Disadvantages of an IVA
Now that you have sifted through the incredible advantages of this option, you need to weigh the cons as well:
- As soon as the first year gets completed, your credit card situation will adversely get affected throughout the IVA payment.
- The IVA doesn’t cater to all kinds of debts such as the fines imposed by the court or the legal penalties.
- If the IVA fails, the creditors will start hovering over your head with the same interest rate.
- The creditors might demand the petition for your bankruptcy if the IVA fails.
- If you find extra money during the proceeding of the IVA, it will be included in your account and you will be obligated to pay it.
- You might have to sell your high-value personal assets to pay off the debt amount.
- If an IVA fails, you will have to cater for stress and the anxiety that occurs as an organic consequence of not having enough money to pay off the debts.
- Not everyone can register for the IVA, especially when young people are concerned.
So now that you have understood the pros and cons of the IVA, you need to sit back and think wisely before applying for it. No wonder, the IVA has emerged as the most prominent option for people who are sinking in debt.