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In the current economical climate, many people are struggling to make ends meet and working all hours sent to put a meal on the table.

Others are sitting on huge debts mounting up and have no job to even start clearing the debt.

And it is not just working class citizens that are struggling. Celebrities like Neil Morrissey and Kerry Katona who are used to leading the high life have found themselves in financial trouble and worrying how to maintain their lifestyle while repaying their debts.

Many people have considered the option of an IVA but don’t know the full ins and outs of how they work and whether they will be beneficial to their needs and requirements.

Well we at IVA.net have come up with a list of advantage and disadvantages to an IVA and whether the process will benefit you, please contact us for IVA advice.

Advantages

1. If you are being harassed by creditors then an IVA can stop this from happening. Once your application has been passed, debt collectors can no longer legally pursue you if you keep up with the regular repayments.
2. An IVA can protect your family home. If you declare yourself as bankrupt, this would be lost.
3. You are still able to keep your professional job. This is critical for people working in finance, accountancy, Government and law.
4. An IVA isn’t printed in the local press or London Gazette, like bankruptcy is. It can be identified on the government insolvency website but very few people check this allowing you to get on with your life and debts in private.

Disadvantages

1. The repayment period is five years and many people are unable to keep this going because of unexpected life events.
2. Not everyone is able to keep his professional status. Some people are removed from their jobs as no difference is made between bankruptcy and IVA.
3. If an IVA isn’t agreed at the meeting of creditors, bankruptcy is still a possibility.
4. If personal circumstances changed during the IVA period it is expected that a higher contribution is made towards the IVA agreement. For example a lottery win or an inheritance.
5. You are unable to take out any further unsecured credit during the term of the IVA.

If the debt is paid over the full 60 months all remained debts will be written off. It is important to read as much information as possible before making decisions like these to find out whether it will really work in the benefit of you and your family. www.iva.net