Benefits of Individual Voluntary Agreement
If you are currently experiencing financial problems and bankruptcy is not an option, an Individual Voluntary Arrangement could be the right choice for you. Let’s take a look at the benefits of Individual Voluntary Agreement (IVA) right now.
Will my creditors keep contacting me?
IVAs are legally binding, which means your creditors cannot pester you once your IVA is approved. You can normally expect to get a percentage written off your debt and you will remain in the arrangement for five or six years. You will normally be able to keep hold of certain assets like vehicles and won’t be forced to sell your home, although you may need to re-mortgage it six months before the end of the IVA.
Will the repayments be affordable?
Efforts will be made to make your monthly repayments as affordable as possible so you can still keep up with your other financial obligations. You may be able to change the payments that you make if your financial circumstances change over the course of the IVA. If your income goes down, you can expect to pay less. Of course, if you start earning more, you will normally need to make higher repayments. You will also have a licenced Insolvency Practitioner to turn to before, during and after the IVA, giving you all the accurate, relevant and valuable advice that you require.
Is an IVA right for me?
You must be prepared to stick to the terms of your IVA, and your income and expenditure will be reviewed on an annual basis to ensure the repayments remain affordable. Not everyone is accepted for an IVA, and the arrangement could fail if you are no longer able to make the repayments -this means you could face bankruptcy. IVAs are not the best match for people in certain professions, so it’s wise to look at your contract before entering into such an agreement. Your IVA will remain on your credit file for six years and you won’t be able to borrow more than £500 whilst you are in the arrangement.