IVAs do have downsides, and the IVA downside that is most often pointed out is the rigid repayment terms of the IVA.
But when you take a closer look at the IVA, and begin to understand what is expected form the creditors, fixed repayments are actually one of the IVAs upsides too.
In most cases IVAs have a 60 month term, and because the IVA is a legally binding agreement, some people feel that it is a major downside that their IVA payment is not flexible.
Quite naturally people are concerned that their circumstances could change for the worse whilst they are in an IVA, and quite naturally they fear the repercussions of being tied in to unrealistic IVA repayments if things turn tough.
However, because they have the protection of the IVA, they are able to approach their Insolvency Practitioner in such circumstances and look for assistance with their repayments, and could possibly arrange a short repayment break.
In extreme cases the Insolvency Practitioner can request from creditors a permanent variation to the payments, should circumstances no longer allow the original payment level to continue.
A more comprehensive list of “The pros and cons advantages and disadvantages of an IVA” can be found in this article, but if you would like to know more about the downside of an IVA call us on 0800 088 7503
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