Is an IVA good or bad ?
Well, it really depends on your personal circumstances to be able to answer this particular question.
There are two significant reasons why people would try to enter into an IVA, as opposed to declaring themselves bankrupt, and where an IVA would undoubtedly be considered a Good idea.
First reason would be to protect an asset, such as equity in a house.
An IVA allows a person to put forward a proposal to his creditors, which outlines how he would like to deal with his specific debt problem.
In cases where there is a property with equity, a debtor will know that in bankruptcy the Official Receiver will, more often than not, demand that the asset be sold to release the equity held within it.
However an IVA offers the opportunity to negotiate with creditors just how much and when this equity will be released. Because the debtor has the opportunity to put forward their preference in this matter, it can only be seen as a Good idea.
The other primary reason as to why people would try to enter an IVA is to protect an income.
Certain professionals are barred from being able to practice their profession if they become bankrupt. An IVA is an alternative to bankruptcy which allows a professional the opportunity to reach an amicable agreement with his creditors, whilst avoiding being declared bankrupt.
These are the two primary reasons for people to consider an IVA over bankruptcy, as there is a clear advantage for the IVA over bankruptcy in each case.
In other circumstances there may not be such an obvious positive.
To be able to see the Pros and Cons that an IVA would bring to you it would be necessary to invest some time talking to a professional debt adviser.
My IVA Adviser offer free consultations via the telephone, especially for you to establish whether IVAs are Good or Bad for you in your personal situation.
Why not call one of our experienced IVA experts on 0800 088 7503
Or you may prefer to leave your details at our quick contact page so that we can call you back at a time which is more convenient for you.
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