Apply online and become debt free - Ashley Park: IVA
IVA's - The Advantages
An IVA is a practical alternative to bankruptcy which has benefits for both you and your creditor.
As a bankruptcy petition can be quite expensive to organise by the creditor, in most cases they will
accept the IVA proposal. This is because unless you have significant assets which can be realised by a
bankruptcy petition, the creditor often has little to gain from the procedure.
There are other advantages to an IVA too, some of which are detailed below.
- Once an IVA is in place, your creditors cannot bring any further action against you, as long as you maintain your regular payments.
- As an IVA is a formal agreement, your creditors cannot change their mind and withdraw from the agreement
- It can safeguard your property
- You only have to make one monthly payment
- You may only have to pay a percentage of your debts back.
- You can be debt free within 5 years.
- Interest on debts can be frozen and no interest can be added to your debts once the IVA has been set up.
- Up to 75% of debts can be written off.
- You are able to operate with a normal bank account providing it has no overdraft facility.
- Lack of stigma or publicity that occurs with bankruptcy
- Does not affect your professional status or ability to hold public office
- Not all creditors have to agree to an IVA, as long as 75% of your creditors do so.
- Your creditors will not make contact with you chasing your debt once an IVA is in place.
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