An individual voluntary arrangement’s is the best and perfect solution for an individual or a person who has a huge amount of debt and he cannot keep the repayments anymore as we all know that there are so many other debt financial tools so IVA’s also have both advantages and the disadvantages
But the most important thing you should have to know about the IVA first and get the overview of the individual voluntary arrangement program that how it will works
If you want to get eligible for an IVA you must have to do some certain amount of minimum debts.
A professional qualified insolvency practitioner will assigned to assist you with your case.
There is a certain fees and charges you have to pay for the service of insolvency practitioner.
The process of negotiable between you and your creditor will be come up with the plan of re-payment so where you can tell that how much you will actually pay every month that can be easily affordable for you.
So if all the creditors will be agreed with your repayment plan then your program of IVA will be started and you just have to keep you repayments continues according to plan
Advantages of IVA’s
- All the collection departments and the creditor will not call you anymore for reminding your debt payments if you have started a IVA’s plan then you will be protected.
- All the IVA’s plans are for 60months so, if you were continue the repayment plan schedule then in 5 years you will be debt free.
- An IVA is a program which have much better solution than filling bankruptcy. If you were finished with IVA’s then you will not have debt issues which are mentioned in your credit record like bankruptcy.
- The best advantage is you should not have to pay more than you can afford, your repayment plan will be according to your ability that easily you can make. Or the best thing it is based on your income.
- So when you are going through this type of plan it will constitute a positive experience in the sense of financial advices that will teaches you how to deal with the debt related issues.
The best fact and an achievement is that you will stay away from the bankruptcy.
- After successfully going through the plan of IVA’s you will start your new life that will be burden free of debt.
These are some of the advantages when you are going through an IVA’S’s and when you compare it with disadvantages you will get the best option to take.
Disadvantage of IVA’s
- When you are going with the time frame of five years you should have to maintain all the payments, otherwise you will be the bankruptcy according to the circumstances.
- If you want to do full and final settlement of an IVA’S plan then it means you will have sell your whole property to pay off all your creditors
- It needs more effort moral and financial that able you to going through an IVA’S plan successfully otherwise you should have to choose bankruptcy as an option.
- The process of IVA’s will give you negative result if you will not keep your repayment plan according to the schedule.
- As bankruptcy,IVA’s also show the credit record, but you can start it up again when term is up and you have to gone through the program’s requirements successfully.
- In IVA it generally requires that you have to tell about your all the assets which you have own. And if a creditor consider that you have too much property then he or she will ask you to sell them in order to pay them back.
As seen there are some disadvantages also present but no financial agreements exist without risk. There will be so many right options which can help you to become debt free. So make sure that IVA is a right option for you or not. A good financial management will gives you time and patience for taking best decision.