IVA Advantages and Disadvantages
IVA’s have a number of advantages for those individuals seeking debt management. We always suggest taking legal advice before entering into an IVA, our listed debt management companies all have experience in advising individuals on their debt circumstances.
IVA Advantages
Protection from Creditors
All unsecured creditors listed as part of an IVA are bound to agree with it under UK law. Once agreed you are protected from any further action by your creditors.
Your Business
If you are self employed your business is not legally affected by an IVA as it will usually be with a bankruptcy agreement.
Your Home
Under a bankruptcy agreement you home is often an asset that can be sold to settle your debts. Under an IVA you are not necessarily forced to sell and the IVA supervisor can protect your property from action by creditors.
IVA Disadvantages
Credit Rating
As with any type of debt management an IVA will typically negatively affect your credit rating. Though as most people seeking debt management already have a poor credit rating this is not typically a big disadvantage.
Length of an IVA
An IVA typically lasts 5 years, where a debt management plan or bankruptcy agreement can take less time to complete.
If you are unsure as to whether you are suitable for an IVA, then we would recommend that you compare our debt management companies, contact them and see what advice they can provide.
