· Debt free in 5 years (occasionally IVA’s last longer but 5 years is the norm).
· Telephone calls and payment demands are stopped. Once agreed, your creditors by law are no longer allowed to demand payments from you by phone or letter.
· Interest and late payment charges frozen.
· Single affordable monthly payment.
· Protection for your home – homeowners will not be forced to sell their home during an IVA, but may have to release some money through a re-mortgage towards the end of an IVA if that is possible.
· Protection of certain assets – such as a car that is necessary for commuting etc.
· Repaired credit rating – soon after the IVA is complete you will be able to rebuild your credit rating again. You will not be credit blacklisted for life.
· Payback – man people are keen to avoid bankruptcy and pay back at least some of what they have borrowed. At least the debtor will have done their best to pay back what they can genuinely afford.
· Fixed, legally binding agreement – you will know exactly where you stand and how long till you are debt free.
· Flexible – even though the IVA is legally binding, a lot can change in 5 years. The IVA allows variations when situations change, provided these can be proved and agreed with creditors.
· Protection from court action – once aN IVA is in place – no further legal action from creditors against you ca take place as long as you adhere to the terms of the agreement.
· Privacy – there is no publicity in local papers, and the arrangement is private between debtor and creditors. However your name can be searched in the insolvency register which is available online.
· Professional status – some jobs do not allow the employees to become bankrupt whereas an IVA can be acceptable. It’s important to check terms and conditions of employment if in doubt. Debtors cannot be Company Directors whilst bankrupt but they can do an IVA