An IVA-individual Voluntary Arrangement is a legitimate or dignified binding agreement between you and other people you owe money to.IVA allows you to make affordable payments to your debts and was originally intended as a mechanism that enables you to deal with business-generated personal insolvency. An individual voluntary arrangement is suitable for all those with larger debts. Besides, it is very helpful for you as it freezes your debts and permits you to repay them over a fixed or determined period.
An insolvency practitioner, who can be a lawyer or an accountant, sets up IVA to work with you
to lay together a proposal to take to your creditors for approval.IVA is very helpful if you want to repay a wide range of common debts, including overdrafts, personal loans, catalogue debts, mortgage shortfalls, or rent arrears. In addition, you are also eligible to take an IVA that can help you with your tax debt that involves council tax arrears, national insurance contributions, court fines, income tax and student loans.
An Individual voluntary agreement offers you much-need protection against the actions of creditors that include auctioning your property, petitioning for bankruptcy, etc. If you want to learn all the pros of an IVA that depend on your circumstances, keep reading this blog as it has covered every advantage of IVA:-
- Pros of an IVA:- Are you facing problems with debt? If so, a list of compelling pros of an IVA has been given below:-
1 You have only to pay what you can afford:-
An insolvency practitioner takes your day-to-day living costs into account, and then they decide on a reasonable amount of money that you can pay.
2 Helpful in protecting your assets:-
When you sign an individual voluntary agreement with an insolvency practitioner, you can protect your most valuable assets, including your home or vehicle. In addition, you can retain your assets after providing a reasonable value to an IP for all your strong suits.
3 You can’t be harassed by creditors for payment:-
When your creditors have agreed to your proposal of an individual involuntary agreement, they are lawfully bound by all the arrangements. This way, they can’t contact you any more to request you to pay the amount. Furthermore, if you do not need to deal with the creditors, you will have to deal with an IP insolvency practitioner and their staff, who will not only deal with your consignee on your behalf but also administer your agreement.
4) IVA: A fixed and a reliable payment:-
Do you want to make an affordable repayment to your debts? If so, you can do it, but only when the insolvency practitioner fixes the amount. This way, after the approval of your agreement, any creditor can’t make any additional charges or also dare not to add more interest to your debts
5.) IVA: A lawfully binding solution:-
An Individual voluntary agreement is legitimately binding, which means you and your creditor must follow all the agreed terms once the IP insolvency practitioner approves it.
6.) This agreement ensures you protection from the legal actions of agents:-
Are you sticking to all the terms of your voluntary agreement? If so, in such circumstances, your creditors are not allowed to take any legal action against you like- sending bailiffs to reclaim your debt.
7.) Individual Voluntary Agreement provides you with peace of mind:-
An IVA lets you repay your debt as much as possible and even at an affordable rate. You need not take any stress about the threats of being prosecuted or financially penalized by your creditors. This way, you get a chance to get on with your life or deal with all of your debts responsibly.
In short, with an individual voluntary agreement, you can repay your preferred amount more comfortably than before.
