IVA pros and cons

Choosing an Individual Voluntary Arrangement to settle debts has many advantages, the primary being that you will be looking towards a debt free future. For a debtor, it is quite important to know all the IVA pros and cons before beginning with the same. ‘Chance for Loans’ is UK’s one of the leading IVA arranger and assists people in monitoring their debts. We are trying to arrange the best possible deals for our client and solving queries related to IVA.

IVA Pros

Creditor Contact

During an IVA, creditors are legally unable to contact the debtor for payment and the Insolvency Practitioner will communicate with creditors on behalf of the debtor.

Legally Binding Agreement

IVA is a legally binding agreement which provides security to the debtor for which the creditor can’t change the terms.

Stop Interest

As soon as you start with an IVA, interest rates and other additional charges will be frozen.

Easier Payments

Now, the client has to pay a single monthly repayment, which then gets dispersed to all his creditors. The costs of an IVA are lower than those incurred in bankruptcy.

Credit Rating

The IVA will be mentioned in the credit report for 12 months, after that it will be obliterated from the same.

Career Options

Taking an IVA has no adverse repercussions on one’s career; only bankruptcy can affect the future prospects of the debtor.

Asset Control

In an IVA, one can keep his assets safe, unlike bankruptcy which is always a riskier proportion even leading to repossession of assets.

Time

With an IVA, one can be debt free in five years. If you complete it successfully you may have a portion of your debt written off. After an IVA is completed, you are deemed to be debt free.

IVA Cons

Equity

in IVA, debtor might not lose his property, but he may have to let loose some of the equity in his home as a final payment to the creditors.

Cost of Failure

If, the debtor fail to pay IVA payments, it's possible he could be made bankrupt.

No Borrowing

during IVA process, debtor can not use his credit or store cards means that no borrowing during the process.
If you lie on an IVA application it is a criminal offence.

If you wish to discuss the pros and cons of an IVA procedure and understand how it can help you, then you can contact us. Our experts can provide best possible advice that will be suits your problems.