There are plenty of reasons why an Individual Voluntary Arrangement, or IVA, could be the ideal debt relief strategy for you. The IVA is a legally binding agreement between you and your creditors, replacing your original debt repayments with a new affordable compromised structure.
But why choose an IVA. Here are our ten biggest reasons:
• Affordability – The monthly repayments of the IVA are designed to be affordable. Debtors can pay whilst getting on with their lives.
• Fixed Term – An IVA runs over a fixed term (maximum 5 years) and debtors know exactly when the process will be complete.
• Debt Write Off – When the fixed period expires, whatever debt remains is written off. Creditors agree the terms and the timeframe; then you simply complete it.
• Privacy – IVA’s are private agreements, not published in the press, nor is your employer notified. The arrangement is between you, your creditors and the insolvency practitioner.
• Professionals – An IVA is an alternative to bankruptcy if you have debts of £15,000+ but cannot apply for bankruptcy due to the nature of your occupation.
• Protection – Once they have agreed to the IVA, your creditors forfeit the ability to take legal action against you to recoup debt. This means that you can avoid any court proceedings.
• Binding – Once the terms of the IVA are agreed your creditors cannot insist upon changes to your debt repayments. An IVA is a legally binding agreement for you and your creditors.
• Security – Your home is not at risk through an IVA, unlike bankruptcy proceedings which would place all of your assets at risk, even your home.
• Permanent – An Individual Voluntary Arrangment is a permanent solution to your debt management problems, and when you’re done, your debt problems will be eradicated.
• Satisfaction – When carrying out the terms of an IVA, a debtor does not suffer the same stigma that is attached to bankruptcy. The debtor pays all that they can afford to pay.