Ever since the credit crunch, statistics show that there have been thousands of cases of insolvency.
People have filed for bankruptcy and many people have also entered into IVAs.
When someone faces insolvency, it is important to know about the different options and how these options affect the well being of the person.
Hence, this is important to make the right decision.
In order to decide whether you should opt for IVA in case of insolvency or not, it is important to know what you are getting yourself into and what are the pros and cons of the IVA.
Each and every person should gauge their individual position relative to the pros and cons of IVA.
When we talk about the pros associated with an IVA, there are many.
The first and foremost advantages of IVA are the presence of complete privacy and your information is not shared by anyone.
Not only that, but you are also debt free when the IVA is completed.
Another advantage of an IVA is that you do not have the fear of losing your home.
This is because an IVA acts as safeguard against losing your home.
While being in an IVA, you can also maintain and operate your current account.
However, you can not avail the overdraft facility.
Another of the great advantages of an IVA is that you cannot only be free of your debt in up to five years, seventy-five percent of your debt can be written off as well.
Although IVA binds you in a contract with the creditors, but as a principle, they can not contact you.
You can remain free of tension, as you are not directly pursued.
IVA also protects you against court action and also do not allow the creditors to make demands.
For the business owners, there is an advantage that they can continue to trade even if they have entered into an IVA.
IVA can prove to be a viable business option that helps you work freely and boost your business.
In spite of the fact that an IVA has many advantages, however, there are also some disadvantages associated with having an IVA.
The time period for an IVA may be up to five years as compared to bankruptcy that is one year.
All the IVAs are recorded on an insolvency register; hence, they can be accessible to the public if someone wishes to look at it.
This can damage the reliability repute of any business.
You would have all your wage slips and salary updates monitored and you cannot pay less than you earn.
Although the time period for the IVA to last is usually five years, but it can take approximately six years to complete the deal.
Therefore, a person has to be patient and must complete all the time requirements with dignity, and come out clear.
In order to have IVA, you are required to fulfill certain criteria; a fix monthly amount must be paid.
Another disadvantage is to strictly comply with the legal agreement.
People have filed for bankruptcy and many people have also entered into IVAs.
When someone faces insolvency, it is important to know about the different options and how these options affect the well being of the person.
Hence, this is important to make the right decision.
In order to decide whether you should opt for IVA in case of insolvency or not, it is important to know what you are getting yourself into and what are the pros and cons of the IVA.
Each and every person should gauge their individual position relative to the pros and cons of IVA.
When we talk about the pros associated with an IVA, there are many.
The first and foremost advantages of IVA are the presence of complete privacy and your information is not shared by anyone.
Not only that, but you are also debt free when the IVA is completed.
Another advantage of an IVA is that you do not have the fear of losing your home.
This is because an IVA acts as safeguard against losing your home.
While being in an IVA, you can also maintain and operate your current account.
However, you can not avail the overdraft facility.
Another of the great advantages of an IVA is that you cannot only be free of your debt in up to five years, seventy-five percent of your debt can be written off as well.
Although IVA binds you in a contract with the creditors, but as a principle, they can not contact you.
You can remain free of tension, as you are not directly pursued.
IVA also protects you against court action and also do not allow the creditors to make demands.
For the business owners, there is an advantage that they can continue to trade even if they have entered into an IVA.
IVA can prove to be a viable business option that helps you work freely and boost your business.
In spite of the fact that an IVA has many advantages, however, there are also some disadvantages associated with having an IVA.
The time period for an IVA may be up to five years as compared to bankruptcy that is one year.
All the IVAs are recorded on an insolvency register; hence, they can be accessible to the public if someone wishes to look at it.
This can damage the reliability repute of any business.
You would have all your wage slips and salary updates monitored and you cannot pay less than you earn.
Although the time period for the IVA to last is usually five years, but it can take approximately six years to complete the deal.
Therefore, a person has to be patient and must complete all the time requirements with dignity, and come out clear.
In order to have IVA, you are required to fulfill certain criteria; a fix monthly amount must be paid.
Another disadvantage is to strictly comply with the legal agreement.