If you’re struggling with debts and are speaking with financial consultants to find a way out of your debts, then by now you’ve probably heard of an IVA. IVA or Individual Voluntary Agreement is one of those things that make your problems sound like they were never a problem to begin with but that’s precisely why they sound like they’re too good to be true. There are many benefits of an IVA agreement but depending on your situation, there might also be some disadvantages as well, which is why it’s a good idea to learn more about the pros and cons before deciding is an IVA is what you need. You can check out more about IVAs at http://www.financial-news.co.uk/46983/2018/03/are-ivas-too-good-to-be-true-or-do-they-really-help/.
For starters, you don’t even have to pay back all of your debt; you only have to pay till a certain time or amount after which the remainder is just written off. Yes, IVA can make you debt free just like that. If you’re entering such an agreement, you’re automatically going to start worrying about your property being on stake but that’s never the case. Your home is protected from your creditors by law. After reading up till here you’re probably wondering if there’s even a downside to IVAs.
IVA can indeed liberate you from your debts but it’s still a very strict agreement that you have to stick with once you’re in it. You will have to make payments up till at least 5 years and the terms of the agreement won’t change according to your circumstances within that timeframe either. In the event that your IVA fails, any fees that you’ve paid up till the time of failure won’t be returned to you and your creditors can have you declare bankruptcy as well.