Reasons for Choosing an IVA
Facing insolvency can be a confusing time, and that's not helped in some ways by the amount of options on offer. If you're in a situation of mounting debt, and need to consider a solution, then an independent voluntary arrangement is something to look into. It offers an alternative to bankruptcy, even if you have reached a state of insolvency with creditors. But why should you choose this option instead of another?
The first thing that people will notice with an IVA is that it gives you the chance to protect your assets. With bankruptcy, it's often the case that possessions are used to pay off creditors. This means bailiffs knocking on your door, and court actions being taken against you. But with an IVA, you handle creditor's demands through a supervisor, and this supervisor can protect key assets from being taken as part of the repayment deal. This means you don't need to worry about your house being taken away, or similar heartbreaking repossessions.
With an IVA you get a structured repayment plan. Usually you pay as little a 200 a month over the course of five years in order to make sure that creditors are satisfied. This small, manageable bill each month is much easier to keep track of than mounting court actions, or the chaos that can come from bankruptcy. The supervisor dealing with the creditors also makes sure that you aren't hassled, so it's a much less stressful situation to be in all round.
It is important that you have some form of income in order to take on a IVA. If you don't have a job, or if your job isn't going to be secure over a five year period, then you might not be able to keep up with IVA payments, and that would mean reverting to bankruptcy with potentially little of your debts paid.
So make sure you're not lumbered with a deal that's not suitable to you, and instead consider all the options. An IVA might just be the things to help you through these difficult times.
The first thing that people will notice with an IVA is that it gives you the chance to protect your assets. With bankruptcy, it's often the case that possessions are used to pay off creditors. This means bailiffs knocking on your door, and court actions being taken against you. But with an IVA, you handle creditor's demands through a supervisor, and this supervisor can protect key assets from being taken as part of the repayment deal. This means you don't need to worry about your house being taken away, or similar heartbreaking repossessions.
With an IVA you get a structured repayment plan. Usually you pay as little a 200 a month over the course of five years in order to make sure that creditors are satisfied. This small, manageable bill each month is much easier to keep track of than mounting court actions, or the chaos that can come from bankruptcy. The supervisor dealing with the creditors also makes sure that you aren't hassled, so it's a much less stressful situation to be in all round.
It is important that you have some form of income in order to take on a IVA. If you don't have a job, or if your job isn't going to be secure over a five year period, then you might not be able to keep up with IVA payments, and that would mean reverting to bankruptcy with potentially little of your debts paid.
So make sure you're not lumbered with a deal that's not suitable to you, and instead consider all the options. An IVA might just be the things to help you through these difficult times.
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posted by Vittoria @ October 15, 2011
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