Is entering an IVA a good or bad idea?

Is an IVA good or bad?

Well, the answer this particular question will depend on your personal circumstances.

There are two significant reasons why people would try to enter into an IVA, as opposed to declaring themselves bankrupt, and in either case an IVA would undoubtedly be considered a Good idea.

Protecting An Asset

First reason would be to protect an asset, such as equity in your home.

An IVA allows the IVA applicant a chance to put forward a proposal to their creditors which outlines how they proposes to deal with their specific debt problem.

In cases where the IVA applicant owns a property with equity, they'll be aware that if they chose to petition for bankruptcy rather than apply for an IVA, the Official Receiver would, more often than not, sell the property to release any equity held within it.

However, the IVA offers the opportunity to propose to creditors particular conditions under which this equity will be released, this saving the property from being forcibly sold.

Because the IVA applicant has the opportunity to put forward their preference in this matter, it can only be seen as a Good idea.

Good at protecting an income

The other primary reason as to why people would try to enter an IVA is to protect an income that would be lost under bankruptcy.

Certain professionals are prohibited from being able to practice their profession if they become bankrupt.

But, because an IVA is an alternative to bankruptcy it gives these professionals the opportunity to reach an amicable agreement with creditors, whilst avoiding being declared bankrupt.

Good alternative to bankruptcy

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.

Professional IVA Advice

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 offers no obligation IVA consultations, designed to establish whether IVAs are Good or Bad when applied you to your personal situation.

Why not call one of our experienced IVA experts on 0800 088 7503.

Or you may prefer to leave your details the form below, so we can call you back at a time which is more convenient for you.

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