When you find yourself in the position where you can no longer meet your debts, it can seem like you have fewer and fewer options left to explore as time passes.
Working out which options are worth exploring can seem like a real task, but if you arm yourself with the right information you can work out a solid plan of attack to get your finances sorted.
There are a number of advantages to using an Individual Voluntary Arrangement.
Avoid Bankruptcy
Firstly, an IVA can be an effective tool in avoiding bankruptcy. As well as saving you from the restrictions and numerous other undesirable consequences of going bankrupt, an IVA tends to cost less that bankruptcy.
Manage Debts
An IVA allows you the real chance to get on top of your debts. There’s no restriction on the amounts of debt that can be involved (upper or lower), nor on the amount of repayments that you propose to make. Given that they’ll likely retrieve more of your debt back than if you become bankrupt, creditors do tend to be amenable to IVAs so it can be a win-win situation.
Control
Using an IVA also allows you to have a greater level of control over what is going to happen with your assets. This can be hugely important, particularly for example if you are a home owner, in which case you may naturally want to keep your home.
Flexible
In general, an IVA offers a greater degree of flexibility. You only have to propose what is realistically manageable for you, and by working with an Insolvency Practitioner you can arrive at a plan that suits you.
Better Future
If you do manage to keep up with the terms of your IVA, it can form a solid foundation for getting your finances in better health in the future.