pros and cons of an IVA?

[louisaL]

what are the advantages and disadvantages of an IVA??

[aguise]

Hi louisa i am just going to say what I think being in one and there are more pros than cons
PROS
one monthly payment
nobody chasing you
debts written off at the end
No credit ( some may see as a disadvantge but I think its great)
No rotten letters through the door that you dont want to open. No fear of the postman.
I know how much we have to live on.
We get to keep 50% of our overtime before we had to use it all to keep our heads above water.
Found a great website like this and am able to talk to others who know what it is like and help those that are at rock bottom
There are more but I am brain dead at the moment

Cons
Living to a budget, it can be hard.
Equity release for those who own property.
Paying all of rises etc
windfalls all of it to the iva
insolvency register.

Thats all I can think of for me.
I am sure others will come up with loads more.

Ang





Please visit my blog at http://aguise.blogs.iva.co.uk/

[iva_squirrel]

Hi louisaL

"Advantages of an IVA:
- Single affordable monthly paymeent
- Fixed repayment period (normally no more than 60 mths) with a specific end date giving Light at the End of the Tunne.
- Creditors must freeze all further interest and charges.
- Once the final payment is made, any outstanding debt is legally written off by the Creditors.
- Creditors are legally bound to the agreement. They can not go back on the agreement and demand increased payments.
- Once the final payment is made, any outstanding debt is legally written off by the Creditors.
- Creditors are legally bound to the agreement. They can not go back on the agreement and demand increased payments.
- Current and Future CCJ’s overturned.
- Protection from court action by creditors.
- The IVA is discreet and can be used by professionals, forces personnel and the police without damaging career prospects.


Disadvantages of an IVA
- Although the advantages of an IVA are significant, undertaking an IVA is a serious matter. As such, there are some things that you must bear in mind.
- The IVA will be recorded on your credit file. This means that you will not be able to take further unsecured borrowing for the period of the IVA.
- Once the IVA is completed (normally after 5 years), you can borrow again. However, it may take some time for your credit rating to repair.
- If you are a home owner, during the course of the IVA you may have to release available equity from your property to increase the overall settlement offer to your creditors."

Regards,
Michelle P.

[MelanieGiles]

The other posters have covered the main points - but one factor I always think is missed is that your creditors have to make a decision on a specific day in time, so the certainty of knowing whether they will accept your offer can be controlled to a certain degree. Brings great peace of mind, rather than months of knowing if your DMP payments are really being accepted.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk