Advantages of An IVA
As with any debt solution individual voluntary arrangements have positive and negative aspects to them. For further advice it is recommended that you speak to an insolvency practitioner.
Positive sides to an IVA
- Debt free in 5 years. IVA’s are a fixed term agreement, which normally lasts no longer than 5 years.
- Payment demands and telephone calls stopped. Once an individual voluntary arrangement is agreed, your creditors are no longer allowed to pursue you by law for payments via the telephone or letter.
- Your debt is frozen. Under the terms of an individual voluntary arrangement creditors are not allowed to add late payment charges or interest to the amount covered in the agreement by law.
- No court action. Under the terms of an individual voluntary arrangement once it is in place all the creditors covered cannot take further legal action on you as long as you stick to the terms of the agreement.
- Repaired credit rating. On completion of an individual voluntary arrangement your credit rating will be repaired and you will be able to borrow money again. You will not be blacklisted for life.
- Private arrangement. If you go for an individual voluntary arrangement you will not be subjected to publicity in the local papers, as it is a private matter between you and your creditors.
