An Individual Voluntary Agreement can have significant advantages for a debtor who faces mounting debts that they are going to struggle to repay.
For many people, an individual voluntary agreement also has several major advantages over bankruptcy. The single largest benefit would be not having to lose your family home.
I will outline some more of the advantages below, if you have any questions please post them in the comments and I will do my best to answer them – but please take independent advice before you act on anything.
Fixed term agreement – an IVA cannot be for a term longer than 60 months. Providing you stick to the agreement, you will be free of debt within that time period.
Privacy – unlike bankruptcy, it will not be published in newspapers, shielding you from any embarrassment with employers or family.
Write off part of the debt – At the end of the IVA, the creditors are obliged to write off any outstanding balance, provided you have stuck to the repayments.
Protection from legal action – Once an IVA is entered into, creditors cannot take legal action against you. They are also prevented from even contacting you.
Legally binding agreement – Once an Individual Voluntary Agreement has been agreed, creditors cannot insist on any changes being made.
Professional solution – Some people cannot resort to bankruptcy due to their careers, for example solicitors or accountants. For this group of people, an IVA allows them to continue their career as normal.
Satisfaction – There is not the same stigma surrounding IVA’s as there is with bankruptcy.
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