Benefits and Advantages of an IVA
If you are very seriously struggling with your debts, then an IVA may be an option. This is a legal process for UK residents, who normally have over £10,000 worth of debt. If you are thinking of becoming bankrupt, then this could be an alternative.
An IVA provides many benefits over other debt solutions such as debt management, debt consolidation or even bankruptcy.
- Your total debt repayments - including costs - can be reduced by up to 75% or more
- All creditor contact will stop for good; no more phone calls, letters, or home visits
- An IVA immediately stops all court and bailiff action against you by your creditors
- All the negotiation with your creditors is handled by a licensed insolvency practitioner
- Interest and charges on your debts will be frozen so your debt will not increase
- You'll pay a fixed and affordable regular monthly payment for the term of your IVA
- An IVA is a legally binding agreement between you and your creditors
- An IVA can help protect your property and keep a roof over your head
- An IVA is more private than bankruptcy, avoiding stigma and embarrassment
- It costs nothing in advance to set up an IVA, and IVA fees are met by your creditors
- With an IVA you can remain a company director, unlike with bankruptcy
- An IVA helps you start afresh and then rebuild your credit rating
This means that your creditors accept a reduced offer of repayment to settle their debt. By entering into an IVA, your total debt repayments - including costs - can be reduced by up to 75%!
Payments are usually made over 5 years, after which the remainder of your debt is written off. During the repayment period, all interest and charges are frozen and you will receive no more correspondence from your creditors.
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