Why Choose an IVA

An IVA has proven to be the perfect alternative for bankruptcy and a large number of people have taken advantage of this option to get rid of their huge debts. An IVA facilitates repayment of debts over a specific period of time in favour of both creditors and the debtors. It enables a debtor to reach a mutual agreement with their creditors by way of reduced monthly instalments over a fixed period of time. The amount left to be paid after the stipulated time is over is written off. If you are still thinking about why choose an IVA, here are some of the advantages of IVA, which will help you in deciding about this option:

• IVA is a private agreement so your family and friends will not know about it. Therefore, no social stigma is involved while signing an IVA agreement. Your name will also not appear in local papers which is a legal condition in bankruptcy.
• You are free of all unsecured debts once the term of IVA is complete.
• It also works to protect your assets as you do not need to sell them off to pay your debts.
• The person involved in IVA may also continue his or her current account though he or she will not get the facility of an overdraft.
• Usually the term of an IVA is 5 years which means that the person will become free of debts within that period of time.
• There are possibilities that you will be able to write off 75% of your debts through IVA, depending on your circumstances.
• With an IVA, you can reach a settlement, which allows you pay back only what you can easily afford.
• With IVA, you creditors will not be allowed to contact you or carry out any legal action against you as far as you are regularly paying your monthly instalments.
• The business owners can easily continue their trade with IVA.
• A bankrupt person will not be allowed to continue working in HM Armed Forces, financial sector or Police Force while this is not the case in an IVA. You can continue with your profession and get earning to pay off your debts.

Other advantages of signing an IVA and why choose an IVA are that there are no professional disqualifications with IVA and you can continue holding positions in public offices. The cost of IVA can be much lower as compared to bankruptcy.