If you are considering your options when it comes to your debt, you may be trying to figure out your ideal debt solution. If you have a high level of unaffordable debt spread over multiple creditors, an IVA could be your idea debt solution. Individual Voluntary Agreements (IVAs) are often a suitable bankruptcy alternative for homeowners who don’t wish to risk losing their home.
And here is why an IVA could be your ideal debt solution…
- Legally binding between you and your creditors. An IVA is a legally binding contract between you and your unsecured creditors. Once your IVA has been agreed your creditors cannot change their mind about the IVA and cannot continue, or start, any legal action against you.
However, if you fail to keep with the IVA repayments your creditors can begin bankruptcy proceedings against you.
- Only repay the debt that is affordable. As long as you keep with the terms of the IVA, you only pay back a proportion of your debt over the IVA term. You will make a fixed monthly payment for an average period of 60 months, after which any remaining debt is written off.
- Avoid the public social stigma of bankruptcy. An IVA is a private agreement between you and your creditors so there is no publicity of having your details the local newspaper. However, details about the order will be available on the Insolvency Register.
- Professional status not affected. An IVA should not affect your professional status, as you can continue with your professional practice and can hold public office.
- Don’t risk losing your home. An IVA allows you to retain control over your home, unlike bankruptcy. The property may be excluded from an IVA proposal although you may have to release some of the equity in your home in order to repay some of your creditor debt.
This are just some of the reasons why an IVA could be your idea debt solution but, before going ahead with any form of financial solution, we would always recommend that you seek professional IVA advice and One Advice are here to help.
Our team of expert IVA advisors are only one phone call away and can help you to decide id an IVA is your ideal debt solution.