An IVA: Is It Right For Me?

During the credit crunch there was rise the percentage UK residents that were facing insolvency. Many people chose to go with bankruptcy & others used IVAs or debt management to deal with their large debt problems. If you happen to be person serious debt make sure you weigh out all the options that are before you. If you don”t know the options you can”t make an informed decision.

Before deciding whether an Individual Voluntary Arrangement is right for you it”s good to do lot research & to really understand the pros & cons this relatively new debt solution. If you”re thinking about an IVA you should gauge the pros & cons based on your particular situation. If you have serious debt problems there might not be lot options but make sure you know them before you jump in.

There are both advantages & disadvantages to pursuing an Individual Voluntary Arrangement IVA . It will allow you to keep your problem mostly secret from general public. But the big advantage is that after the IVA is finished you will have no more debt

Not only that but you wont lose your home like you might if you were to go bankrupt instead. In many instances you can keep bank account as well will likely be separate from your old account though. This new account will not let you make overdrafts or even take out small loans so keep this mind.

One the greatest pros to an IVA is that 75% your total debt will be written after the IVA is completed. This means that within 5 years give or take you will be totally debt free. The other great thing about the contract between you & your creditor is that they can”t contact you under any circumstance. Many people find this to be very nice because they know that collection agents will finally leave them alone.

IVAs were introduced by the UK government & they are legally binding so your creditors cannot come after you once you start the IVA. The only instance where they will be allowed to take legal action against you is if you stop paying your monthly premiums. If you are director company based the UK then you can keep your position & the company can continue to trade.

IVAs are not perfect. There are some disadvantages as well. One the main ones is the fact that an IVA will last 5 years while filing for bankruptcy only takes about year. That is major difference. You may not get to keep your home but might be worth if you don”t have lot assets.

An IVA keeps you on strict budget because the idea is that you will pay as quickly as you can. The problem with that is you may have to contribute more to the IVA if you get raise. Although the IVA process will take 5 years you still need to get your credit rating back order. That can take year or two after the IVA is complete.

Learn more about county court judgements Stop by Gary Price”s site where you can find out all about IVAs & what they can do for you.