If you are currently considering an Apply for an iva to handle all your debt, today's guide aims to answer, as comprehensively as possible; all the major aspects including the pros and cons of applying for IVA you will require knowing.

What is an IVA in the UK?

An IVA is a settlement agreement between an Individual & their creditors.

An individual can make a proposal offering monthly payment plans over a 1-5 year period or maybe offering a lump sum amount. The IVA might need lenders to compromise on their debt to receive a pence in the pound distribution.

The Apply for an iva is a binding agreement that can be applicable for all lenders & requires acceptance at the lenders’ meeting of nearly 80% of lenders voting in favor of the Proposal.

The Insolvency Practitioner (IP) acts as a Nominee in presenting the settlement plan to lenders & then if acknowledged will act as Supervisor of the Arrangement.

This is pretty essential that the Insolvency Practitioner should assure that the Payment proposal is achievable & a good balance is struck between the debtor & the lender.

Why may an Individual Propose an individual voluntary arrangement?

• The debtor might have got a bankruptcy or statutory demand petition from a lender & an Apply for an iva may provide a better outcome for creditors than accessing the Bankruptcy.

• An undercharged bankrupt may seek to annul the bankruptcy by accessing the Individual Voluntary Agreement.

• Being a professional (e.g. solicitor or accountant) if you want to go for bankruptcy, it could hamper your office & therefore an IVA may be a good alternative to assure that they continue in employment.

• The debtor might have problems in keeping up with loans, credit cards debts, & other monthly expenditure & an Apply for an iva might offer a mechanism to provide a coherent monthly payment plan & freeze interest.

• The debtor might be in a DMP settlement program & an IVA might offer finality in dealing with the lenders.

An overview of Apply for an iva pros and cons

The Apply for an iva pros & cons actually depend on the debtor's personal situation, but here is an overview of the IVA pros and cons!

Pros of IVA-

You only pay what you can afford

Your day to day expenses will be considered before the payment to your IVA.

It protects all the assets

Different assets like your house, car are protected during the IVA settlement, meaning that you're able to retain all these assets, provided they're of a reasonable price.

Bankers cannot harass you

When bankers have agreed to the IVA settlement proposal, they're legally bound to maintain the decorum & can no longer reach you directly to request payment. But, you'll need to deal with the Insolvency Practitioner & the IP will deal with the banker on your behalf.

A reliable, fixed monthly payment

You can easily make a reasonable payment to your debts in the knowledge that your debt amount is fixed. Creditors cannot make additional charges or add more interest to your debts once the IVA is approved.

A fixed, reliable payment

You will make an affordable repayment to your debts as your monthly payment plan is fixed. Bankers cannot add more interest or make any kind of extra charges or to your debts when the IVA settlement program is approved.

Monthly charges & Interest rates are frozen

When the IVA settlement program gets approved by the banker, monthly charges & interest are frozen & can't be included in the debts by your lender. It helps prevent the debt from enhancing in the near future.

A legally binding plan

An Apply for an iva is legally binding, so that once the plan gets approved, both you & your banker will follow all the agreed terms & conditions.

Protection from bailiffs as well as other legal action

As long as you follow each & every terms of your IVA, lenders aren't enabled to take any sorts of legal steps against you. It also includes sending bailiffs to reclaim debt.

Decreased social stigma

Although debt shouldn't be a taboo generally, it may be an Apply for an iva that is generally considered better than some of the other alternatives, like bankruptcy.

Cons of IVA-

But, as with any other service or product, there are certain drawbacks as well. Some of the major ones are-

Your credit score will be influenced for sure

Like any other settlement plan, IVA will also pose a negative impact on your credit report. When you enter into a IVA settlement program, it will be registered on your credit report & will remain there for at least 6 years. Therefore, you'll possibly find it pretty difficult to obtain other financial products or future loans.

It isn't private

When an IVA gets approved by lenders, it is registered on a public database named the Insolvency Register. Well, it can be searchable by anyone. In practice certain people are usually going through the system.

You will require following a strict budget

Monthly payment needs to be made on a regular basis. Although the settlement agreement is somewhat flexible for sure, you will require a budget for the next few years to assure that you continue making monthly payments.

And in the case of a homeowner, people might require to release equity from their home.

If the total debt is over 6,000 pounds or you don't want to directly deal with your banker, an Apply for an iva could be the best bet. Get in touch with us today with any concerns or queries you've regarding 'Apply for an iva register' or need of any kind of IVA advice, & we would be delighted to answer them for you.

Ending Notes

An IVA is a legally enforceable agreement between a consumer and their creditors to pay off all or part of their debts.

Apply for an iva could be the key to a debt-free future, with loans forgiven up to 85%*. In England, Wales, and Northern

Ireland, IVAs are available. An authorised insolvency practitioner has professionally built up an application for an iva

solution. They normally have a five-year lifespan. With any bankruptcy procedure, there are benefits and drawbacks. Here are

some of the benefits to think about when considering whether or not an IVA is good for you: Entering an IVA, like any other

bankruptcy process, has ramifications that should be examined. Please call us at 03338803165 for more details.