Going for an IVA — Individual Voluntary Arrangement — is something that a lot more people are thinking about these days. The cooling markets and down economy are making people rethink how they spend money, as well as how they get out of debt. Do you really want to file for bankruptcy? Probably not — the consequences of filing for bankruptcy stretch outward for a very long time. It’s in your best interest to make sure that you focus on getting the best option for your own needs.
Don’t beat yourself up about the situation you’re in. Everyone is going to find themselves facing their own unique challenges, so why stress about it? That’s what we were thinking, too!
So, what about that IVA? There are a lot of merits to the IVA.
You can write off all the debt you cannot afford, meaning that after the 60 month timeline has passed, the debts that aren’t covered are removed. This is something that a lot of people look forward to and it is covered by law — no credit can just tell you that they aren’t going to accept it. It’s actually part of the Government Insolvency Act of 1986. If you have 12,000 GBP of debt or more, you can qualify for the IVA. It’s starting to become one of the biggest alternatives to bankruptcy around.
Tired of creditors calling? You’re actually not alone — you will want to go with the IVA. The credits will stop calling, and they will also stop sending letters. SO if you’ve feared going down to your mailbox, you can check your mail with confidence now.
It can also stop legal actions being taken against you — once you qualify for the IVA, you can’t just be yanked over to court. You have to make sure that you focus on the road ahead without trouble — and that’s a fact!
Generally speaking, about 70% of your debts are removed with an IVA — but that still means that you have 30% that needs to be paid off. You have to make sure that you pay off your debts every month. If you aren’t thinking about paying your bills on time, you’re not going to get anywhere fast and you may end up violating the terms of the IVA. The benefits are so great that this would not be a good thing at all.
It can take about six to eight weeks to arrange an IVA so make sure that you are still handling your finances accordingly until you’re approved. Getting the interest lowered or even stopped on your debts is definitely worth it!