The benefits of IVA

Established by the Insolvency Act 1986, Individual Voluntary Arrangement or in short IVA is a legal binding repayment proposal and an alternative to the bankruptcy. IVA is an agreement between the creditors and debtor for easy repayment of the owed amount and is supervised by the Insolvency Practitioner. The Insolvency Practitioner is like a Chartered Accountant having a special license from the Government to propose an IVA. He prepares a formal repayment plan according to your capacity and puts it before the creditors. When 75% of the lenders agree to it, the legal binding agreement comes into force.

The advantages of IVA UK

1- Your residential property remains secured during the repayment period. Once, the creditors agree to the IVA, they can not repossess your home during the mutually agreed tenure.

2- Unlike bankruptcy, IVA is a private agreement. Here your identity remains undisclosed. IVA is very much beneficial for bank employees, policemen, persons employed in defense who fear to file for bankruptcy that might lessen their credibility in public.

3- The length of IVA can be between 5-7 years after which you are declared debt free whether you have the repaid the total amount or not.

4- Availability of fresh credit is also another advantage of IVA. In bankruptcy, you are debarred from taking credit for a stipulated period of time which is absent in case of IVA.

5-IVA will have no negative impacts on your trade relationships.

6- Compared to bankruptcy, IVA is more efficient to increase your credit score.

7-The fees you need to pay are also lesser compared to that of bankruptcy.

The benefits of IVA can be availed by all. IVA helps equally the sole traders or a partner in a joint ventures experiencing credit pressure. This tenure of IVA can also be reduced by paying lump sum through the release of equity from property.

By: Editor 123

The article is contributed by a professional content writer, having experiences of working in different industries. For further information on iva debt and iva uk please visit www.mymoneyadvisor.co.uk/

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