The Advantages of an IVA

When your debt becomes overwhelming and you can no longer keep up with the payments, you may choose an individual voluntary arrangement (IVA) as an alternative to bankruptcy. There are many reasons to choose an IVA, and you should learn as much as possible before entering into one.

An IVA will protect your privacy. Unlike bankruptcy, an IVA doesn’t have to be advertised, allowing you to manage your financial situation without the public being made aware of it. Your employers don’t need to know about an IVA, so your reputation at work will also be protected.

Your assets and lifestyle will be protected as well. You will not have to give up your house or your car because the IVA will allow you to continue to make your mortgage and automobile payments. Items that are a regular part of your lifestyle will be unaffected, and provisions will be made for you to pay for them. Things such as veterinary bills, pet insurance, satellite television and entertainment are considered to be part of your regular household expenses and will be included in your budget. You will not be forced to give up things that you enjoy.

You will be allowed to pay all of your household bills and buy all of the food that your family requires. Sometimes, when people are drowning in debt, they are forced to seriously compromise their style of living in a desperate attempt to manage the debt, even when they earn enough that they should not have to suffer.

When an IVA commences, interest will stop accruing on all unsecured debts, and upon completion of the IVA, your creditors can no longer pursue you for the debts that were entered into the agreement. All settlement of debts under an IVA is final.