Saturday, July 13, 2024

5 Reasons Why You Should Consider Having an Individual Voluntary Agreement

Individual Voluntary Agreement (IVA) is a legal binding between debtors and his creditors that offers a debt solution and protects the debtor from a legal binding. If you have unsecured debts like payday loans, personal loans, credit cards, and other outstanding bills, you should consider getting debt help. IVA is the best debt relief solution that offers protection from the creditors. Creditors cannot take any action against you after you enter an IVA. IVA is an agreement according to which you make your repayments based on your financial situation and income. The remaining debt can also be written off when you can’t manage to pay more. Here are some reasons why you should enter an Individual Voluntary Agreement.

  • No Legal Action Against You:

creditors tend to take legal actions against the debtors when they aren’t
making repayments. An IVA protects you from legal actions. You are legally
protected and exempted from the legal actions once you sign an IVA. That means
you will be off the hook, and you will not receive any warnings. Your creditors
give up their rights to take legal actions against you. 

  • Your
    Assets Will be Safe:

When you get IVA help and advice, your assets are also protected. This means you don’t have to liquidate your assets and valuables to pay off your debt. Moreover, no one will force you or threaten you to sell off your assets to make your debt repayments. This agreement ensures that you make manageable repayments through your income, and you don’t have to lose your home equity, properties, and other belongings for settling debts. 

  • Your
    Credit Score Will Get Better:

bankruptcy is a terrible decision as it affects your reputation, and your
inability to pay off debt becomes public knowledge. With an IVA, your difficult
financial situation is best kept between you and your family as it helps you
avoid bankruptcy. Bankruptcy also leaves a lasting mark on your financial
reputation. Also, IVA recovers your poor credit rating at a faster pace and is
certainly a better option than going bankrupt. Thus, IVA is the best way to
avoid bankruptcy. 

  • Protects
    Your Future:

When an
IVA is signed, you are sure that you have to deal with debt only for a fixed
time period. This is an agreement in which your creditors agree on a certain
time period to settle the debt, meaning that you won’t be struggling to pay off
your debt for the rest of your life. In most cases, an IVA lasts around five
years. IVA is a legal obligation that binds you and your creditors to it. So,
you don’t have to worry about your creditors changing their minds later. They
cannot ask you for additional installments once they sign an IVR. 

  • Freeze
    the Interest Rates:

all forms of debt involve interest that makes it even more difficult for the
debtors to repay all the outstanding debt. Therefore, you should consider
entering an IVA as it freezes the interest owed on your unsecured debt so that
you don’t have to deal with a huge buildup of interest. Massive interest rates
are a huge financial burden, and an IVA can help you a lot in this respect.
This means all your repayments will be going toward paying off the actual debt
rather than the interest. 

if you are in debt, seek the IVR help and advice as you cannot set up this
agreement yourself. An IVA helps you pay off your debt with a single monthly
payment that is set considering your current financial situation. 

Claire James
Claire James
Claire is an accounts manager at Fire Digital UK, an online publishing and content marketing company based in the North West.

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