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Comparison between Pros and Cons of IVA Proposal

If you are suffering from a debt, then you need to find out the best way to getting out of it. It is important that you don’t get bankrupt and that’s why you need to apply for the IVA proposal so that you can get extended time for the payment of debt to the creditor. This agreement can allow the debtor to pay the amount of money within five years of extended time.

Pros of IVA proposal:

  • The IVA agreement officially bounds the debtor and creditor and then the debtor can also know how long it will take to complete the payment.
  • This is a flexible option and can also be changed within the time period of five years.
  • The creditors won’t be allowed to take any legal action against the terms of IVA arrangement.
  • The creditors can’t take any legal action in the matter of IVA document.
  • There are some companies who don’t hire employees who are bankrupt but IVA is a reputable debt payment option which is accepted by the companies these days.

Cons of IVA proposal:

  • If you have got the percentage in any property or assets, then you might need to release some of it according got the part of the agreement. If the creditors allow the debtors to agree on making extra IVA payments. If the equity release of your property isn’t possible, then the proposal can be extended for six years instead of five years.
  • When a person’s debt is more than six thousand euros, then you will need to make the minimum payment of 80 euros every month as it is the minimum debt. There are some of the iva disadvantages  which are also helpful in making the payment of debt.
  • When you have signed the IVA proposal, you aren’t able to save your money in debit or credit cards. You are allowed to change the mortgage or you can also take the new mortgage for you under this proposal.
  • If you are not able to maintain your debt payments, then you can do the payment through the IVA payment system. You can also take payment holidays but if you will miss the payment, then the period of IVA will be extended over another year.
  • The credit rating is highly affected and if you won’t be able to get the duration for the IVA proposal. The period of this payment is dependent on the time period.
  • The IVA proposal is mainly longer than five years and it will last up to one year until you will make the payment order and then it will last up to three years.
  • All of the creditors are included in this IVA agreement and one can’t make different arrangements for different creditors
  • There are some of the jobs which don’t allow the employees to be bankrupt and IVA holder. So, you should keep in mind that you don’t get involved in such stuff and end up losing a job.
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