If you are getting difficulties to pay back your debts then it is better to move towards some efficient options like IVA, DRO, trust deeds, consolidation or debt management plan. All these options are effective to an extent. But it is important to know pros and cons of every available option before considering that. It will help to find out best available solution in your case. Here get good and bad facts about IVA repayment process.
Advantage of IVA Plan:
- It is an efficient way to avoid bankruptcy and repossessions of your valuable property
- There will be fixed monthly payments that will reasonably affordable
- Interest rate will be frozen
- Creditor cannot take any legal action against you as long as you meet with IVA repayment terms and no missing payments
- Your debts will be cleared in affordable manner in maximum of five years
Disadvantages of IVA Process:
- IVA is a formal option to make payments if reasonably not affordable through general repayment terms
- It can affect your credit score in adverse manners throughout IVA period and one year after completion of IVA
- If you have some properties of equity value then you may need to release partially to repay debts.
- It usually happens in last years of IVA period.
- If IVA fails then your creditors may file bankruptcy petition against you.
- All debts cannot be included in an IVA, some debts like court imposed penalties, fines, council tax arrears are usually out of IVA
- If there is extra income through any sources they you may need to pay that for IVA contribution
- You may need to sell your high value assets for similar assets of lower values
These are some important facts about IVA process. If you are unable to make your payments in time then IVA is a good option. But you should also consider associate Biographsworld terms and its effects to know whether it satisfy your financial problem or not. Compare other alternatives also to find best available solution of your problems.
