Finance

Why so many people are considering the IVA

IVA debit

There is a debt solution that is growing in popularity in the United Kingdom, this debt help program (known as the IVA) is a scheme which comes with a range of different benefits.

What are the benefits of the IVA?

First, if you enrol on an IVA (short for individual voluntary arrangement) you benefit from what is known as an ‘interim order’, an interim order is a legal piece of legislative protection which makes very clear to your creditors that they must not hassle you during the setting up or throughout the IVA.

Another benefit of the IVA scheme is the fact that all of your debts are frozen, all interest and charges are frozen, this is so the debt cannot continue to get worse whilst you are trying to pay it of (this would obviously make matters worse and much more difficult to solve).

Also, to add to the first benefit mentioned, for the full duration of the IVA you would have an appointed insolvency practitioner as the new point of contact for all your creditors.

On the scheme there can be no hassle from bailiffs, no court actions, no CCJs, no debt collection hassle, all of that stops as part of the legal order

Which us to protect the person in debt whilst they address their financial situation.

The IVA debt help scheme can also write off huge proportions of debt, people have been known to write off in excess of 80% to 85% of their financial liabilities, due to this debt help scheme made possible from 1986 legislation known as the 1986 insolvency act.

Monthly bills are also consolidated whilst on an IVA, this can help make peoples; debt repayments much more viable, and at the end of the arrangement the remainder of the Debt is written off.

The IVA scheme also helps you to protect your assets, by addressing your unsecured debts you will have additional spare resource in order to address the highest priority debts such as Hmrc debt, mortgage debts, and other important forms of monthly responsibility.

There are also additional benefits to an IVA you can read about here

Are there downsides to an IVA?

The main downside to the individual voluntary arrangement is the restrictions on your personal expenditure for the length of the arrangement, it is a debt help arrangement that you must take seriously, extravagant or frivolous spending will not be an option for you on an IVA because a lot of this money should be going to your creditors to repay your debts.

As long as you can show commitment to the arrangement you can see all of the benefits to it, however if you break the terms of the IVA you can end up with a petition for bankruptcy, which is where you creditors petition to make you bankrupt to recover more debts.

How is it possible to write off debt with the IVA?

Well the IVA is a government supported measure that is backed by legislation that makes the writing off of huge sum of debt possible, so this is a government initiative to help people struggling this makes it possible to write off personal debts. .

If you have a genuine desire to eliminate your personal debts, and write off huge portions of what you owe, there are a range of IVA companies out their to help you with such.

When it comes to writing off debts, it is important to remember even though this sounds fantastic (and it is of course a great advantage for the debto), it is still important to repay what you can afford (which is what takes place in an IVA).