In order to avoid cases of bankruptcy, nothing can be better than opting for Individual voluntary agreements or IVA as they are commonly known as. This is a financial agreement between the creditor and the individual who might end up in bankruptcy in case he or she fails to follow the right path of financial strategies. When opting for an amount, it would depend on the financial condition of the borrower and all documents would be checked thoroughly before lending the money to the borrower. Though this IVAs brings in a host of advantages for the borrowers but then it has a lot of pros and cons as well about which the borrower should be well aware of.
Advantages Of Seeking Help From IVA
While seeking help from IVA, the financial condition of the borrower would not be disclosed. On the contrary, bankruptcy announcements are often made through newspapers. Even if the IVAs consider you on the risky side, your name would not appear on the credit report, and the agreement would be kept hidden between you and the creditor.
Apart from this, the amount of time that is offered by the IVA is effective enough such that you can easily make ways to pay off your debt. Bankruptcy would give a time period of one year, and on the contrary, an IVA would provide you as long as five years. Also, the cost of bankruptcy is hard to deal with compared to that of IVA.
Protection Provided By IVA
IVA offers more benefits compared to other debt paying system, and once the creditor has decided upon a certain amount of money, it can be considered to be final. This might be different in case of other debt management system. In addition, a debt report would be prepared by the IVA, and they would show the willingness of the borrower to repay the money. In case of maintaining your business, IVA is much safer and protective than any other form paying your debt.
When it comes to disadvantages of IVA, it can be said that the borrower has complete of their home and it brings in the chance of the individual of being a good loan candidate who would return his money in time. Also, it would not appear on the credit report, but it would be maintained in the credit report for a short period of time.
Therefore to avoid any situations of bankruptcy, take out an iva here that would help your adequately.
However, it is necessary that you should choose the IVA Company properly such that you get the b rest assistance. A quality company would also help you to get rid of the debt in a quick time.