There are advantages as well as disadvantages that come with each and every aspect of finance, when surveyed with a bird’s eye view. The financial condition of the applicant should first be assessed prior to choosing the Individual Voluntary Agreement.

1. The Advantages and Disadvantages of an Individual Voluntary Agreement
People who are under the load of debts go in for an Individual Voluntary Agreement (IVA) as a chosen solution for the
management of debt for a number of reasons. For those against whom there is a considerable sum of cash under their
names to be repaid will definitely find it suitable to choose this program to follow. The accumulation of extra interest
is legally protected against by this type of a program. Many individuals who borrow more money than they can
actually afford to pay back naturally find a solution like this as a better option in comparison to going in to file for
bankruptcy.
There are numerous entities who can’t afford to go bankrupt because of the jobs that they serve. An agreement like
this has no effect on their aptitude to work in a public office, having a career in the Police Force, or for that matter,
follow one in the Armed Forces.
You must have come across a bankruptcy case, which may have floated in the local newspapers. But you will never
find an IVA case in the headlines, or in the entire news itself. A tough fiscal condition can be handled in the most
discreet way by choosing an IVA. Another positive aspect ruling a situation like this is the occupation of the person is
not affected and further, nobody can know about this pact.
While following the IVA terms, the applicant remains protected against the additional any lawful action. To add on,
nobody will come to know about the agreement.
Coming to the disadvantages of an IVA, first of all, the individual is meant to follow the fiscal plan, which lasts for the
whole term of such a program. Any type of default would eventually cause a failure of the IVA program, which will
lead the individual to become bankrupt. As and when this pact is being developed, one must make sure that each
liability as well as the assets should be declared. The assets that are featured by objects that are very expensive can be
used for release for the purpose of repaying the creditors. For the period of the final six months related to the IVA, a
portion of the equity belonging to the individual’s property is requested to be released. Even as the IVA is not
published, it is however, added to the public register. To top it all, the decision to go in for an IVA is basically
dependent on the factor whether the creditors can derive higher returns as compared to a situation of bankruptcy.
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