Benefit Iva: Gaining From the Iva Scheme

3:30 pm

 

IVA or individual voluntary agreement is beneficial for those who are in verge of bankruptcy. They can benefit a lot from benefit IVA. There are professional and authorized institutions to help you with that. They appoint an insolvency practitioner to study your financial situation and propose a repayment scheme to your creditors. Once it is done no clause can be changed in the agreement.

 

Any individual, sole traders and partners can avail the benefits of IVA. This saves your property from any action. The monthly repayment is divided to all your creditors by the insolvency professional.

The benefits of IVA:

IVA has many benefits instead of bankruptcy. They are:

1. It allows the borrower to continue with his career and generate income like before.

2. The debtor is given priority when making the proposal in such manner that a daily requirement does not need to be sacrificed.

3. It does not restrict the debtor from taking any professional decision.

4. Financial security is taken care of as no legal action is allowed against the debtor.

5. Generally the tenure of IVA is 5 years.

6. It freezes all bank charges and interests.

7. The interest rate cannot be increased once it is decided.

 

 

The benefits of IVA enable you to be debt free in 5 years. It is proposed to the creditors that the borrower will pay a monthly payment to the creditors. When they agree the borrower is saved from any further legal actions and any asset, if there is any, is also saved. The borrower can lead a normal life like before after this.