Finding out the facts about IVA’s is a little more difficult than you might think.
The internet is full of debt advice sites all claiming to be able to enlighten you with the ‘Facts about IVA’s‘ only to confuse their readers to death because in truth they barely understand IVA’s themselves.
To be able to offer clear IVA guidance you need to actually understand all aspects of IVA’s - FACT.
So here are just 12 of the most common ‘facts about IVA’s‘ for you to digest….
- Fact 1 - IVA’s are a legally binding agreement between a debtor and his unsecured creditors.
- Fact 2 - IVA’s have an agreed fixed time period, which is normally 5 years, but can also consist of just 1 lump sum payment.
- Fact 3 - IVA’s will write off all the outstanding debt when the IVA finishes at the end of the fixed time period.
- Fact 4 - IVA’s are based on affordable monthly repayments, which are in proportion to the overall size of the debt.
- Fact 5 - IVA’s are not suitable for debt levels below £12,000 as creditors will reject an IVA proposal at the creditors meeting below this amount.
- Fact 6 - IVA’s are not suitable if the debtor has less than 2 separate and individual creditors.
- Fact 7 - IVA’s stop your creditors from taking legal action against you, once the IVA has been accepted.
- Fact 8 - IVA’s will protect large assets, such as equity in your home, which will be vulnerable in a bankruptcy.
- Fact 9 - IVA’s are private arrangements and are not published in the press.
- Fact 10 - IVA’s must include all your unsecured creditors, as there can be no favouritism.
- Fact 11 - IVA’s must be administered by an Insolvency Practitioner.
- Fact 12 - IVA’s are an alternative to bankruptcy.
If you would like to discuss you situation with a qualified IVA adviser, call 0800 088 7503.
Alternatively, leave your details at our quick contact page and we will call you back.
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