IVA Concerns

Debt solutions such as remortgage and debt consolidation simply replace existing debts with new ones. The rate of interest is sometimes lower, which leads to saving of some amount of money, but the actual level of debt remains the same or may even increase if repayments are over a longer period. A consolidation loan or remortgage should be manageable but at the end of the day, you have to pay off your entire loan amount no matter how you do it. In contrast, through IVA concerns, you can usually write off a part of your entire debt after making monthly contributions for five years, and avoid the consequences of filing for bankruptcy.

An IVA company provides a solution to debts supported by the government which enables you to write off quite a significant portion of your debt, depending on your financial situation and your ability to make contributions into the IVA. If your creditors agree to the IVA, then both you and they will be legally bound to follow the terms and conditions of it, which means that once an agreement is set up between your creditors and you, then you are protected from the demands of the creditor unless you fail to abide by the clauses in the agreement. In addition to that, unlike bankruptcy, your financial condition will be confidential and private between you, the IVA company and your creditors which means that you’re job will not be in jeopardy and you may be able to retain your normal bank accounts.

There are various positive sides of IVA concerns including:

• An IVA normally lasts for 5 years. After the IVA is completed, remaining debts are written off.
• After the IVA has been agreed, creditors are obliged to stop calling you to ask for payment. Legally, once an IVA agreement has been signed, the creditors are not allowed to pursue the debtors by letter or phone for payment.
• Once the IVA company has set up the IVA, the creditors can no longer add any late payment penalties or interest to the agreed amount.
• As long as you as a debtor are abiding to the terms mentioned in the agreement, your creditors are not allowed to take any legal action against you.