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Everything You Need to Know About IVA

When it comes choosing IVA companies, it is important to to look at a few essential aspects. Before getting into the pro’s and con’s, it is useful for you to know about the basic details of an Individual Voluntary Arrangement. IVA is a debt solution that offers necessary support to the people struggling with debt repayment. It allows them to reschedule their monthly debt repayments. If you owe more than £15,000, then you may become eligible for an IVA (Individual Voluntary Arrangement) and possible write off up to 75 % of the amount that you are unable to repay. Just like any other debt solution, it is crucial that you get familiar with the pros and cons of Individual Voluntary Arrangement before making any plans.

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Pros

You are only required to pay a fixed amount each month for a time span of 60 months. Once the period gets expired, the remaining debt is written off and you become completely debt free.

The problem with other debt solutions is that you often have to deal with annoying creditors such as receiving frequent phone calls and letters about loan repayment. With an Insolvency Voluntary Arrangement, you would not have to deal with annoying contacts anymore, except for the contact with the Insolvency practitioner at the early stages of your case.

If you are dealing with hefty debts, you may be required to pay a large sum each month, with majority of the payment going to the interest and charges. However, with an IVA, you can pay as little as £200 per month.

IVA offers guaranteed protection of your assets such as your car, house, or any other possession as long as you do not have too much equity.
Due to the fact that IVA is a legal agreement, you will not be chased by the creditors for more repayments in future.

Cons

Once you have acquired an IVA, you will no longer be able to seek out any further credit until the 60 month period is over.
While being in the programme and afterwards, your credit rating will be affected and it may be difficult for you to obtain any further credit.
Your monthly income will be reviewed every month, and if you have received an increase in your monthly income, then they may increase your monthly repayment.

How to Find a Right IVA Company?

It is crucial that you feel comfortable with your advisor while discussing your financial as well as personal matters. Your advisor must possess sound knowledge of an IVA process, and be willing to guide you through the process effectively. Moreover, the company should be able to recommend the right solution based on your situation.

Make sure to consider a few options before making your final choice. Find out whether or not the solution offered by the company is reasonable and realistic. There are numerous good IVA companies out there, so make sure to conduct thorough research.
Remember that IVA is not the only debt solution that is made available to you. You must opt for an IVA only after you have done considerable amount of research and planning.

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