The IVA is known as a formal alternative for individuals trying to avoid bankruptcy. Usually it comprises only the claims of unsecured creditors, leaving the rights of secured creditors largely unchanged. You should be aware of the fact that its a contractual arrangement with creditors which can be as flexible as an individual's own circumstances that based on capital, income, third party payments or can say a combination of these. During this process, a debtor who has enough money left over after priority creditors and essential expenses, may be able to arrange an IVA.
Some of Advantages of IVA for Individual, Sole Trader and Partner are allows a Sole Trader and Partner to continue to trade and generate income towards repayment to creditors that would otherwise have a call upon the personal assets of the individual; No restrictions as regards personal credit although in practice can prove difficult to obtain; and also the Debtor does not suffer the restrictions imposed by bankruptcy, such as not being able to act as a director of a limited company etc. Similar advantages go for creditors also like the costs of administering an IVA generally lower than in bankruptcy, enabling a higher return to creditors, and also operate as an insolvency procedure and creditors which as a output of it still reclaim tax and VAT relief as a bad debt.
Moreover its also important to know the disadvantages of IVA on the parallel side such as when contributions from income are being made, then its generally expected to be for a period longer than that in bankruptcy, i.e 5 years as opposed to 3 years, then the 5-year period is often needed by creditors as a bargain for allowing the Debtor to avoid the consequences of bankruptcy; If the Debtor fails to comply with the terms of the arrangement his home and assets can still be at risk if they have not been specifically excluded from the proposals, then likely that the Debtor will be made bankrupt at that time, and so on. So study well about this service before dealing with its pros and cons for your future safety.
Some of Advantages of IVA for Individual, Sole Trader and Partner are allows a Sole Trader and Partner to continue to trade and generate income towards repayment to creditors that would otherwise have a call upon the personal assets of the individual; No restrictions as regards personal credit although in practice can prove difficult to obtain; and also the Debtor does not suffer the restrictions imposed by bankruptcy, such as not being able to act as a director of a limited company etc. Similar advantages go for creditors also like the costs of administering an IVA generally lower than in bankruptcy, enabling a higher return to creditors, and also operate as an insolvency procedure and creditors which as a output of it still reclaim tax and VAT relief as a bad debt.
Moreover its also important to know the disadvantages of IVA on the parallel side such as when contributions from income are being made, then its generally expected to be for a period longer than that in bankruptcy, i.e 5 years as opposed to 3 years, then the 5-year period is often needed by creditors as a bargain for allowing the Debtor to avoid the consequences of bankruptcy; If the Debtor fails to comply with the terms of the arrangement his home and assets can still be at risk if they have not been specifically excluded from the proposals, then likely that the Debtor will be made bankrupt at that time, and so on. So study well about this service before dealing with its pros and cons for your future safety.
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