Benefits of an IVA – Find out how you can benefit from them
An IVA is usually recommended for debt over £15,000. If you want to know how you can get rid of an IVA, we will guide you. Click to find out how to arrange an IVA and also get some confidential advice to help you get out of debt.
There are various benefits of an IVA. IVA’s can help both the debtors and creditors as compared to other debt solutions including bankruptcy and debt management plans. Opting for an IVA, enables you to enjoy various benefits. An IVA is a formal arrangement wherein you are protected from legal action and given an assurance that the terms of the IVA will be adhered to.
Firstly, during an IVA, all interest being charged on the debt is stopped as are all legal proceedings including petitions for bankruptcy. Moreover, at the end of the IVA any remaining unpaid debt is also written off leaving the individual free of debt. With an IVA it is very much possible to write off as much as two thirds of the original debt.
IVA Guide – Follow It To Get Over Debts
The constant rise in the debt in UK has left people struggling to keep their financial situation stable. If you are one such borrower and are facing difficulty coping with debts, you can opt for an IVA.
Individual Voluntary Arrangements were introduced by the UK government as part of the Insolvency Act 1986. They were designed to provide a viable alternative to bankruptcy for individuals and small businesses. The government was concerned that in many cases bankruptcy can be a counter productive step in which both debtors and creditors lose out. The purpose of IVA is to provide a better solution for all parties.
Bankruptcy Benefits – Know More About It
An IVA is not suitable in all circumstances. A debtor without assets or significant income would be better off by applying for bankruptcy. After the new Law on bankruptcy was passed under The Enterprise Act a first time bankruptcy now only lasts for one year with a repayment period of 12 months to 36 months. In an IVA, the repayment period lasts normally for 60 months. So the debtor is committing to repay for a longer period than would be the case in bankruptcy. Obviously many people will opt for an IVA to avoid the social stigma of bankruptcy. However, if the IVA creditors refuse to accept the proposed IVA then the debtor should consider bankruptcy. There are various bankruptcy benefits that you can benefit from.
If you are having problems with debt, then the first thing you should do is to speak to an independent debt advisor. There are many organizations which are able to discuss your debt problems with you and suggest the best way to overcome them. In most cases this advice will be offered free of cost. Although they provide a good solution to debt problems Individual Voluntary Arrangements aren't suitable for everyone and so it important to get impartial advice before making a commitment.
Once you have been discharged from your Bankruptcy Order, all your debts will be written off and you can restart the process of rebuilding the damaged credit score. You will be debt free future within 12 months. There will be no more harassing calls or letters from creditors demanding money, as they will be dealt with by a third party.
Once you have declared yourself bankrupt, any assets will be sold to repay your creditors and your financial life will be subject to scrutiny. |
