10 reasons to enter into an IVA

If you find yourself in financial difficulty then you’ll naturally want to find a way out of it.  In this article we take a look at the top 10 reasons why entering into an Individual Voluntary Arrangement might prove beneficial:

1. If you’re in debt then the chances are, you’ll already have had the phone call, the letter (or even the home visit) from your creditors. By entering into an IVA these all stop – for good.  This is because an IVA is a legally binding agreement and once you’ve instructed your insolvency practitioner they won’t be able to contact you about the debt (in whatever form); thus providing instant peace of mind for the vast majority of debtors.

2. If you enter into an IVA then you’ll simply have to make one monthly repayment to your chosen advisor, who will then distribute it to your creditors. This is similar, in essence, to a consolidation loan in that it condenses all the various repayment plans into just one affordable repayment for the duration of the IVA.

3. If the repayments aren’t repaid in full by the end of the IVA then the remaining balance will simply be written off. This means that, once it’s satisfied, you can’t be pursued for any remaining balance and you’ll be free to rebuild your future credit score without having to worry.

4. If you’re a home owner then (unlike bankruptcy) you won’t be forced to sell your home. Whilst you might be required to re-mortgage it (albeit within reason) you can enter into an IVA safe in the knowledge you won’t lose your home, or have to move into rented accommodation.

5. An IVA is time restricted so after either 5 or 6 years your financial liability will have been satisfied and you’ll be free to move on from it.

6. With IVA companies, you’ll also be able to keep certain assets – such as family vehicles. This provides a distinct advantage for most; especially if they’re needed to get to and from a place of employment and thus aid a monthly income.

7. An IVA also enables you to repay at least some of your debt back to your creditors as a gesture of goodwill. This actually has another benefit too.  In terms of future lending, some creditors see this as a positive step towards rebuilding a financial future and will even extend credit once the IVA has ended.

8. IVA’s can be extremely flexible which means that, if your circumstances change during the arrangement, your advisor can help manage it for you i.e. by providing a repayment holiday.

9. Your advisor will also ensure that the monthly repayment is completely affordable for you, taking into account any other debts you might have too (which can’t be incorporated into the IVA).

10. Last (but by no means least), an IVA means you’re never without support. In fact, your chosen advisor will continue to manage it on your behalf throughout its duration and will act as an important resource should you have any concerns along the way.