{"id":12823,"date":"2010-10-18T11:22:00","date_gmt":"2010-10-18T10:22:00","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=12823"},"modified":"2020-02-18T11:32:22","modified_gmt":"2020-02-18T11:32:22","slug":"iva-pros-and-cons","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/iva-pros-and-cons\/","title":{"rendered":"IVA Pros and Cons"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Insolvency<\/h2>\n\n\n\n<p>To be eligible for an IVA you must first be insolvent so let\u2019s assume  that you are. There are alternatives to an IVA such as bankruptcy but  let\u2019s just consider an IVA as a solution for you by looking at the pros and cons.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\">Pros of an IVA<\/h2>\n\n\n\n<p>It will provide relief from your debts while enabling you to repay as much of your debt as possible to your creditors. You will avoid the stigma of bankruptcy with its associated disabilities, restrictions and obligations. It will enable you to keep better control over your assets by for example being able to retain your home and your car. You will be able to keep your employment and if you are  self-employed you can remain in business for the full term of your IVA  leading to higher returns for your creditors. Your IVA will be binding on all your creditors, including dissenting  creditors, provided the IVA is supported by 75% of voting creditors, as  measured by value. <\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-content\/uploads\/2020\/02\/1047-1024x683.jpg\" alt=\"IVA Pros and Cons\" class=\"wp-image-12838\" srcset=\"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-content\/uploads\/2020\/02\/1047-1024x683.jpg 1024w, https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-content\/uploads\/2020\/02\/1047-300x200.jpg 300w, https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-content\/uploads\/2020\/02\/1047-768x512.jpg 768w, https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-content\/uploads\/2020\/02\/1047-1536x1024.jpg 1536w, https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-content\/uploads\/2020\/02\/1047-2048x1365.jpg 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li>You will achieve a higher level of realisations in an IVA than you  would in bankruptcy, leading to higher returns for your creditors.<\/li><li>You will incur lower costs than you would in bankruptcy, again leading to higher returns for your creditors.<\/li><li>You will be subject to less publicity than you would encounter in  bankruptcy. For example, in an IVA there is no mandatory publication of  your name in newspapers or other periodicals.<\/li><li>Should your circumstances change significantly over the duration of  your IVA, you can, with the agreement of your creditors, vary the terms  of your IVA.<\/li><li>There is a trend towards minimal (and reducing) court involvement in IVAs. This will benefit you and your and creditors. <\/li><li>The IVA process is well regulated so you will have a high level of protection from unscrupulous practices.<\/li><li>On approval of your IVA, all creditors must stop contacting you,  interest on your debts is frozen and all penalties are stopped. <\/li><li>All your debts are dealt with and written off in a known and finite time period \u2013 usually five years \u2013 but it can be shorter.<\/li><li>Your monthly payments will be affordable.<\/li><li>As an alternative to monthly payments you can enter a one-off IVA by  making a single lump sum payment with a considerably shorter duration  of perhaps less than one year.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Cons of an IVA<\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>You have to pay the set-up, supervision and disbursement costs of  the IVA. These costs are taken from your monthly contributions to your  IVA.<\/li><li>If your IVA is not approved, your creditors are free to pursue other  legal actions such as petitioning for your bankruptcy, obtaining court  judgments against you or registering charges on your assets.<\/li><li>There is a high level of creditor agreement required to approve your  IVA. At least 75% (by value) of voting creditors must accept your  proposals for the IVA to be approved.<\/li><li>Creditors may seek at the outset to apply extensive modifications to  your IVA proposal. Such modifications often seek to increase your  monthly contributions to your IVA and your IVA may fail during its term  of supervision if you are unable to sustain such enhanced payments.<\/li><li>Creditors may seek to limit the level of living expenses which you  may claim in your IVA making it less generous than what is allowed in  bankruptcy. This increases the possibility that your IVA may fail in  supervision if you cannot reasonably live within the limits imposed.<\/li><li>The term of your IVA during which you must make payments is usually five years versus a maximum of three years in bankruptcy.<\/li><li>You will not be allowed to borrow during the term of your IVA,  except with the express permission of your supervisor and\/or your  creditors.<\/li><li>You credit rating remains poor even after completion of the term of  your IVA. Your name will continue to appear on your files \u2013 as  maintained by the credit reference agencies- for six years from the  commencement of your IVA or from when your default was first registered.  <\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>There are alternatives to an IVA such as bankruptcy but  let\u2019s just consider an IVA as a solution for you by looking at the pros and cons.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-12823","post","type-post","status-publish","format-standard","hentry","category-iva-articles"],"_links":{"self":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/12823","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/comments?post=12823"}],"version-history":[{"count":2,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/12823\/revisions"}],"predecessor-version":[{"id":12839,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/12823\/revisions\/12839"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=12823"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=12823"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=12823"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}