404 Not Found The Plus And Minus Points Of An IVA | Blogazine.org 

The Plus And Minus Points Of An IVA

RSS FeedFinancing Category RSS Feed - Subscribe to the feed here
 

If you are seriously considering an IVA as the solution to your debt problems, then you should take time to think over both the pros and cons. Some people find that applying for an Individual Voluntary Agreement is a better solution than turning to bankruptcy. Read on for an overview of the positive and negative impacts of an IVA and how it compares to bankruptcy.

An IVA works by providing you a reasonable time frame to pay back the money you owe creditors. This period of time usually lasts around 5 years, which is 2 years more than a bankruptcy would last. With an IVA no further communication from your creditors is allowed which can be a massive relief for any debtor. Also with an IVA it is legally enforced that creditors can no longer make late payment or add interest charges.

Just like with bankruptcy an IVA will effect your credit rating. It will not be as damaged as if you went bankrupt but you will still not be able to gain credit for the duration of your agreement. It may be quite difficult to get credit for a period following your IVA also.

When you apply for bankruptcy, depending on your situation, you may not have to pay back any of your debts. With an IVA you will definitely have to pay back a considerable portion of the money owed. This is usually at least 40-50% of the total debt owed. With an IVA you are also unable to make individual arrangements with any of your creditors, they will all be part of your agreement.

One pro of an IVA, that many debtors approve of, is that your financial situation will stay private. It will not be made printed in your local newspaper as with bankruptcy and can only be found in the insolvency register when searched for.

If you are looking at an IVA make sure you get all the facts

HTML Ready Article You Can Place On Your Site.
(do not remove any attribution to source or author)





Firefox users may have to use ('ctrl' + 'c') as usual to copy once highlighted.

Find more articles written by Darren Tee


please bookmark and share our site

Add Your Comment


 
Welcome

Welcome to Blogazine.org.

Our website is a blog magazine as well as an article directory. We publish articles on a wide range of topics of interest to our readers. Our articles may be republished on websites and blogs. We welcome new authors and guest bloggers.
Sign up below to become an author on Blogazine.org!

  • Articles: 31
  • Comments: 0
  • Authors: 394


Promote Your Blog



Website Legal Forms Generator