IVA Pros and Cons
IVA Pros and Cons
There are various IVA pros and cons to consider if you are looking at ways of dealing with debt. IVAs (Individual Voluntary Arrangements) offer the chance to have interest charges suspended as they pay off their debts and this must be agreed with creditors through an insolvency practitioner. Your financial situation will be assessed and a set amount will be used to pay off your debts. This amount can be changed if your circumstances change.
IVA pros include:
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The possibility of writing off up to 65% of your total debt
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Preventing creditors from making payment demands
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See your credit rating improve when your IVA comes to an end
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Work out exactly how much you have left to spend once your monthly payment has been paid
However, IVA pros and cons come hand in hand.
IVA cons include:
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Potentially having to sell endowments/equity in your home before the IVA is signed and sealed
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Longer time span than bankruptcy – bankruptcy usually lasts three years, while IVAs tend to last five
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Potentially paying more of the debt back than with bankruptcy
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Not being able to take out further credit while the IVA is in place
Debt can make you feel like you are unable to cope, so getting professional help and advice can really help. If you wish to find out more about IVA pros and cons, click the link below and fill in our enquiry form - an advisor will be in touch.
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