✔Protects Your Pocket.
You will only be required to pay into your IVA what you can actually afford to pay. Your creditors can't expect you to pay any more than you can afford.
✔Protects Your Future.
Your IVA will last for a fixed time period, which is normally 5 years. Once creditors agree to this time frame they can't change their minds and ask for further payments.
✔Protects Your Assets.
Your IVA will protect your assets, such as equity in your home, by preventing your creditors from forcing you to sell up in order to pay them back.
✔Protects Against Legal Action.
Your IVA will be a legally binding agreement, and once in place it will remove the right of any of your creditors to take legal action against you, even if that creditor didn’t vote in favour of your IVA.
✔Protects Against Interest.
Creditors lose the right to charge you any interest on your debts once your IVA is place.
✔Protects Against Creditor Fees.
Once your IVA is in place it blocks creditor from charging you any extra fees, including late payment charges or arrears.
✔Protects Against Creditor Harassment.
Once your IVA has been accepted, your creditors must refrain from contacting you directly, instead they must communicate with your Insolvency Practitioner.
✔Protects Your Reputation.
Unlike in a bankruptcy, your IVA is NOT published in the press and, further unlike in bankruptcy, your PAYE tax code remains unchanged during your IVA, which minimises the chances of your employer being made aware of your financial circumstances.
✔Protects Your Income.
IVAs provide a legal alternative for occupations to which bankruptcy is prohibited. Therefore if you are a Limited Company Director, a lawyer, an Accountant, a Bank employee, an Independent Financial Adviser, a Prison Officer, a member of our Armed Forces, a Police Officer, a Civil Servant, a Government employee or for that matter any person whose contract prohibits bankruptcy as a debt solution, an IVA is your primary alternative.
✔Provides Possible Debt Write-Off.
Any debt which has not been repaid at the end of your IVA’s fixed time period MUST be written off by your creditors.
✔Provides Peace Of Mind.
Your IVA allows you to repay as much of your debt as possible, at an affordable rate, without the threat of being prosecuted or financially penalised by any of your creditors. This allows you the chance to get on with your life in the knowledge that you are dealing with your debts in a responsible manner.
✔Protects your Hire Purchase Agreement.
If you are currently in the process of buying a car or bike through a Hire Purchase agreement, an allowance will be made within your household budget to enable you to maintain the payments till such time as the vehicle is completely owned by you.
✘Your Credit Rating.
Your IVA will impact on your credit rating for 6 years from the moment it is accepted.
Your IVA will require you to notify your Insolvency Practitioner in the event that your receive a financial windfall. You will be expected to contribute your windfall into your IVA for the benefit of your creditors. Depending on the size of the windfall, you may be required to repay your creditors in full and cover all the IVAs costs.
Your Insolvency Practitioner will need to take an annual snapshot of your financial health. If you can afford to increase your payments into the IVA you will be legally bound to do so.
✘Restricted Banking Facilities.
Due to the IVA you will not be allowed to have a bank account with an overdraft, a credit card or Cheque book. Instead you will need to have a basic bank account, which still has all other banking facilities, just no credit.
✘No Cancellation Clause.
You can’t simply cancel your IVA. Because all IVAs are legally binding agreements you would be required to notify your Insolvency Practitioner of your wish to terminate your IVA. This could result in you being made bankrupt.
Your creditors will want to ensure you are living within your financial means, so they will expect you to manage your finances carefully and remain within a realistic household budget. As a result, they will only agree to modest living allowances as part of your IVA budget.