Benefits you can get from IVA

Benefits you can get from IVA

So many people have heard about IVA. They, however, do not know what it means and how it can help them. That is one thing you need to be interested in. It is always important that you do not make hasty decisions. That is the most important thing to take into consideration. This unique arrangement is an arrangement that you can make to ensure affordable monthly payments towards your debts are made for 5 years. The truth is that 5 years are enough years for you to have all of these things sorted out. When you are able to pay some amount after these 5 years, the rest of the amount is written off totally.

Some benefits you get from this arrangement include

1.       With an IVA debt, you will be asked to make repayments only when you can. Also, allowances will be considered for food, entertainment, childcare, bills and others.

2.       There is no need to make initial payments with these arrangements.

3.       You will be free from debt after 5 years. When 5 years elapse without you making all payment, you will not be asked to make additional payments.

4.       You will not have to worry about your loved ones and friends finding out about your situation. IVAs aren’t published in local newspapers or London Gazette. So, you have nothing to explain to anyone.

5.       There is no way your creditors will be permitted to contact you in any way. Immediately this arrangement is made you have nothing to worry about. They will leave you in peace.

6.       There is no way you will be kicked out of your home.

7.       Your pension will never be affected.

8.       You can decide to tell your employer about this individual voluntary arrangement you have entered into if you feel you wish to.

It is always important that you consider if you actually quality or not. Most times, people make mistakes by not checking. When you check it helps you to make the right decisions. So always make sure you find out.

Some risks you encounter with IVAs

Before you decide to make an individual voluntary arrangement, you need to know the benefits. As you know the benefits of knowing the risks is also important. This is what you can always trust to work out for you. Knowing and understanding the risks will never go wrong. When you know the risks clearly accept them you never have challenges. Some risks include

1.       If you have a credit rating that is perfect, it can be damaged.

2.       If you have a house that has some value, you might be required to have it released as equity.

3.       There are chances that your IVA proposals aren’t accepted.

4.       If monthly payments aren’t kept up with, there will be the high tendency of going bankrupt.

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