There are thousands of people out there struggling to pay debts. It gets to a point where one feels like it is time to get financial help. The burden of debts can be too much. IVA is a way to help people solve their debts in a more manageable and structured manner. IVA is open to everyone. The ability to use it is based on your current financial status, not your profession or job. Like any other debt solution procedure, IVA comes with its advantages and disadvantages. This article will discuss IVA Pros & Cons. Read on.
- Debt free- IVA lasts for a fixed period. Usually, not more than five years. This means that after the fixed period agreed, you might be debt free.
- Stops payment demands- once you agree on IVA, your creditors will be bound by the agreement, and they are not supposed to demand payments from you by letter or telephone.
- Charges and interests will be frozen- immediately the IVA is approved, your creditors are not supposed to add interests or charges to your account.
- Monthly payments are reduced to once- after the agreement is signed, you should agree with your creditors how much you can afford to pay in monthly basis.
- Repaired credit rating- after you have completed your payments, you will be issued a certificate of completion. This will bring a positive impact on your credit rating.
- The agreement is legally binding- IVA legally bids you and the creditors. This way, you will know your current stand and after how long you will walk debt free.
- It is a private agreement- this is a private matter between the debtor and the creditor. There will be no public notice about the same in the media.
- Your profession will not be affected- you can comfortably continue with your occupations as you undertake IVA. It will not affect your career in any way.
- Lower fees- the processes are cheaper compared to court cases and official receiverships involved with bankruptcy.
- Creditors must agree- for the avenue to go through, all your creditors must agree through a vote.
- Monthly payments should be affordable- IVA will only go through if you or another individual can pay the monthly payments to the creditors.
- You must stick to the monthly payments- if you fail to stick by the amount you are supposed to pay monthly, IVA will fail, and your creditors will be at liberty to take actions against you.