Individual Voluntary Arrangements are formal agreements recognized by law, which means that creditors must abide by the terms of the IVA in the aftermath of the formal agreement. This removes all uncertainty and provides you with a formal and reliable timeline for your future debt-free program.
Second, because this is a legally binding agreement for all creditors, they have effectively settled their disputes with you and are required by law to cease sending you correspondence and making phone calls demanding payment. They are not permitted to continue contacting you by phone or mail for payment.
In addition, an IVA plan prevents your creditors from initiating court proceedings, as following the agreement, they will be unable to file any new lawsuits against you.
To be eligible for this protection, you must strictly adhere to the IVA agreement. Another benefit is that you plainly understand the monthly payment amount. Because IVAs have a predetermined ""lifespan,"" you know exactly how long you will be required to make payments.
In addition, the details of an IVA are not published in local newspapers, unlike a chaotic bankruptcy. Your name could be associated with your IVA on the internet's Insolvency Register, but few people are aware of this resource, so your situation is likely to remain completely private.
Lastly, an IVA plan has no effect on your professional standing. This benefit may be especially essential to qualified professionals who wish to avoid the stigma associated with debt issues.
Before making any long-term decision, ensure that you have thoroughly researched all available information and that you are aware of the long-term financial implications of an IVA plan.
Excerpt:
Modern solutions to accumulated debt (such as an IVA plan) can initially appear complicated and unreliable, particularly when you are just beginning your search for solutions. This article explains, in straightforward terms, some of the benefits of IVAs in order to help you understand what may be involved.
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