Who does not suffer from financial issues? It is one of the most critical phases in one’s life when he feels completely shattered. However, if he takes the bull by the horns and thinks well on the solution of financial issues then success is the ultimate outcome. Financial issues such as debt are a persistent headache so deal with it through IVA. You must know well what is an IVA before making a decision.
IVA (individual voluntary agreement) is a solution to your financial issues. It helps you to save your bankruptcy and saves your asset as well. This is basically an agreement that the creditor and debtor signs in order to pay the debt over a certain period of time. Let us have a glance at the benefits of IVA to know it in depth.
Single Monthly Payment
What can be better than IVA? It kicks the tensions and worries in the wink of an eye. If you get the IVA approval, then you are relaxed enough to just pay monthly. This single payment is decided in the agreement, and you are bound to pay such amount to your creditor. Hence, the tension of the debt all at once is avoided.
A creditor cannot put extra payment or interest on your debt amount if IVA is approved. The facility of IVA prevents you from bearing such pressures of the creditors. According to the agreement of law, your creditor would not add on any sort of charge to your account. Without such agreements, the creditors can tease the debtors and take the full benefit of the situation by potentiating the debt amount by addition of more and more interest.
This interest amount becomes greater than the amount of debt. Hence, the debtor remains in debt throughout his life.
5 Years of Relaxation
It is the desire of debtor to get rid of debt as early as possible, but financial issues or crises hinder him from doing so. The exceeded duration proves to be a great blessing in this regard. The monetary conditions do not remain the same throughout life. With IVA, you agree to pay the debt in the given duration which can be up to 5 years. 5 years is a massive time to pay back the debt amount.
Protection of Assets
The major benefit which inclines debtors to consider IVA is the protection to assets. Your assets such as home remain safe as your Insolvency Practitioner makes such beneficial clauses which protect your assets. Your IP would design the agreement to save your assets from creditors. Hence, it is necessary to provide even the minute details to the IP.
Protection from Legal Actions
Creditors are free to claim for their payment. Failure to pay the payment can even enforce the creditors to take legal action against debtors. However, a debtor enjoys the optimum peace of mind and relaxation under an IVA approval. IVA perfectly protects the debtors from legal issues. If the debtor sticks to the clauses of IVA, then he remains safe from legal actions taken by creditors.