Benefits of an IVA
To understand the benefits of an IVA it's important to understand some of the issues of debt and the effect that it has when it gets out of control. No one plans to take on too much debt. It happens for a variety of reasons, normally associated with an unexpected change in circumstances.
As the pressure of excess debt grows we know that it's the uncertainty that is most difficult to deal with, and it takes a number of different forms.
The uncertainty of the present; How am I going to get through this month? Who's that on the telephone? I'm dreading the post in the morning.
The uncertainty of the future; What will my creditors do? Will I lose my home? Will I ever get credit again? Would bankruptcy affect my job?
The uncertainty of what to do; Do I need help? Who should I turn to for advice? I don't understand the difference between bankruptcy, an IVA and a debt management programme. Reading web sites makes me more confused.
The benefits of an IVA
An IVA is one solution to a debt problem. It may not be the right choice for certain people and for others it may not be possible to propose an IVA, normally because of the mix and amount of their debts.
For those who are able to proceed with an IVA the following benefits become available;
- You will have access to the best professional advice, provided by qualified and highly regulated insolvency practitioners to advise you on your options and the best choice for you.
- It is a requirement of an IVA that lenders will be legally obliged to freeze all further interest and charges.
- As part of your IVA it is likely that creditors will agree to a substantial write off of debt. If this is the case then the fees that we charge, which have to be agreed with your creditors, will effectively be borne by them.
- The uncertainty will be removed. Your lenders will no longer be able to threaten you with legal proceedings and all communication will be directed to the Supervisor of your voluntary arrangement.
- You will have worked with your insolvency practitioner to agree a household budget including your monthly contribution to your IVA. Provided that you maintain that payment for the duration of the IVA and comply with the terms of the Arrangement, you will be free of your debt at the end of the Arrangement.
- Your IVA will include provisions that, if your circumstances change, the terms of the IVA can also be amended, with the approval of your lenders, to adjust the amount that you pay in to the Arrangement.
