You only pay back a percentage of
your debts. If you follow the agreed
terms, you will be debt free in 5
years time.
Up
to 75% of your debt may be written
off.
This is a legally binding solution
so no further interest or charges
can be added to the debt. Enforced
by law creditors can’t change their
mind once they’ve agreed. You also
get protection against possible
court action.
Agreed monthly payment plans will
remain fixed unless your income
level dramatically increases.
It is a private agreement – only
you, your advisor and your creditors
need know about it. There is no
publicity in the local papers, as is
the case for bankruptcy.
You can continue to practise as a
professional person (i.e.
accountant, solicitor, doctor etc)
or as a director of a company and
can hold public office, as an IVA
does not affect your professional
status.
You can open a regular bank account,
without an overdraft facility and
have no/fewer credit restrictions
than if you go bankrupt.
You can safeguard your property, as
the proposals can be made flexible
to suit personal circumstances. |