Are You Considering Applying For An Iva?

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Are you considering applying for an IVA? This guide weighs up the pros & cons so you can make an informed decision about whether an IVA is the right debt solution for you. If you want to know more about IVAs, or would like to discuss your options for FREE with one of our debt advisers, please don’t hesitate to call using our freephone number 0800 280 2816. GET ADVICE NOW Advantages of an IVA It is affordable: Monthly IVA payments are calculated based on what you can reasonably afford, whilst still maintaining a comfortable lifestyle. Moreover, as part of your IVA, all your unsecured debts (with interest and charges frozen) are put into one affordable monthly total payment, so you don’t have to worry about your debts increasing. It is…show more content…
Legal action is stopped: Once you enter into an IVA, your unsecured creditors can’t take any further legal action against you. This protects you from bankruptcy as long as you adhere to the terms of your IVA. Your home is safe: An IVA won’t normally affect your home, so as long as you maintain your mortgage payments, you won’t have to sell your home. It is very rare that creditors will ask you to sell your home, and if they do, you have the opportunity to reject this clause and not proceed with the IVA proposal. You pay something back: An IVA allows you to repay more of your debts to your creditors than if you were to go bankrupt. Become debt-free quicker: An IVA is one of the fastest ways to clear your debts. IVAs usually last 5 years – however this could be extended by a further 12 months if you can’t release equity from your property. At the end of this period, the rest of your debts are completely written off. Keep your vehicle: You will normally be able to keep your vehicle during an IVA. As long as you need the vehicle (for work, or for generally getting around) it is unlikely that a creditor will ask you to get rid of it. However, if they do, you can simply reject their stipulation and not proceed with the IVA proposal. IVAs have a great deal of flexibility: If your financial circumstances change, you can request a ‘payment break’ of up to six months, or ask for a 15% payment reduction. So, if you lose your job or find yourself in a difficult
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