You’ll Keep the Creditors at Bay.

Many of our clients come to us seeking debt help because they’re worried about their creditors. Unfortunately, when you owe people money, they will take the necessary steps to recover that debt. Of all the things that can cause stress, creditor harassment is up there at the top of them. But when you enter into an IVA, your creditors agree to halt all direct contact with you, which means you can make your repayments without the constant phone calls and the threat of a visit from the bailiffs. As long as you keep up with your monthly payment plan, you’ll be able to relax and won’t have to worry about interest rates increasing.

You’ll Have an Affordable Monthly Payment Plan.

An Individual Voluntary Arrangement is a popular way to become debt-free, and while you need to pay the money owed to creditors in full, you’ll be able to live comfortably. Your insolvency practitioners will look at your monthly outgoings and factor them into your debt repayment plan. For example, essential outgoings include your rent or mortgage, utility bills, grocery shopping, transportation costs, caring for your children and pets, and general living expenses. The practitioner will take your financial circumstances into account and develop a plan that accommodates all your payments.

It’s a Legally Binding Agreement

When you enter into an IVA, your creditors also have a set of rules to follow. They’re not allowed to directly chase you for payments, and they also cannot increase your interest rates at any time. This is a positive solution for many people because they don’t have to worry about creditors harassing them.

Your Assets Are Protected

An Individual Voluntary Arrangement takes many things into account, including your personal circumstances. It’s essential for people to feel secure, and one of the most worrying times for anyone in debt is the potential to lose their sense of security. If you own a property or car, they won’t be subject to the IVA, and you’ll be able to pay off your remaining balances without worrying about losing your transportation or home – as long as you stick to your end of the arrangement.

You’ll Write Off Your Debt.

One of the most worrying things for anyone is being in debt and having no clear roadmap out of the situation. With interest rates continually rising and bailiffs chasing payments, it’s challenging for people to gain any financial control over their life. With an IVA, you enter into an agreement to make regular, affordable monthly payments, which will gradually reduce your outstanding debt. It gives people a clear time frame of how long they can expect to owe money, and the added support of an insolvency practitioner means people can completely write off their debt and repair their credit file.

An IVA Has Less Stigma

As a society, we always feel embarrassed to talk about debt – even though most of us are in some form of debt. If you have a credit card, or a mortgage, you’re technically paying off a debt, but most people don’t like to talk about their financial struggles. Bankruptcy is often seen as a social stigma, and most people will do anything to avoid it. An IVA means you don’t have to file for bankruptcy, and you can benefit from a more effective debt write off solution.

It Will Give You Better Options in The Future

When someone files for bankruptcy, it impacts their employment options. There are many jobs that aren’t available, including:

• Director of a Company
• Solicitor
• Estate Agent
• Trustee of Charity
• Member of Parliament
• Join the Military or Police
• Hold a Black Cab License
• Become a Licensee
• Chartered Accountant
• Any Financial Services Authority Related Job

As you can see, the repercussions of bankruptcy are severe, so, understandably, people seek other debt management solutions. While an IVA can impact your employment if you already work as a solicitor or accountant, you’ll be able to show potential employers that you’re taking the necessary steps to manage your debt amount and pay it off. Instead of filing for bankruptcy, you’re showing a degree of responsibility. As you can write off your debts and rebuild your credit file, you’ll be able to access better employment options in the future.