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Individual Voluntary Arrangements - Advantages
- Up to 75% of your debt may be written off, although this amount
may vary depending on your circumstances.
- You will make a single affordable monthly payment. There will be
no need to make multiple payments to different creditors. Your
monthly payment will be based on what you can afford after your
living expenses are deducted from your income. You will know what
you have to pay each month and for how long.
- All future interest and charges are frozen.
- The agreement is legally binding. This means that once agreed,
creditors must stick to the agreement and they can take no further
action against you. In addition, actions taken in the past such as
County Court Judgements will be overturned.
- An IVA is a private and discreet procedure. Unlike bankruptcy,
it is not publicised in the local newspaper.
- A self employed person can continue with their business.
- An IVA will not harm your job and can be used by professionals, forces personnel and the
police without damaging career prospects. Unlike with bankruptcy
where individuals are automatically disqualified
from many professions such as law and accountancy.
- Unlike with bankruptcy assurances can be agreed to protect the family home.
- For debtors with loans and credit
card debts, the monthly payments under an IVA should be considerably
less than current minimum monthly payments.
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