IVA Pros and Cons For Businesses
There are many benefits of an IVA for businesses. One of these benefits is that it allows business owners to ring fence debt and pay it off while still trading. This allows the business to continue to pay its bills and keep its staff. Another pro is that an IVA protects the business’s credit rating. This is a benefit for business owners who do not want to risk being shut down because they cannot afford to pay their bills.
The biggest pro for an IVA is the protection it offers from creditors. If you have a large number of credit card bills, it’s possible that you’ll have enough income to cover the balance but if you have high interest charges, you may not be able to afford to pay them off in full. However, an IVA freezes interest rates on the debt you have approved. This makes it easier to afford repayments, and it’s less expensive than debt settlement.
An IVA can last as long as 6 years, depending on how many payments you missed during the initial period. However, this can be extended further if you’re not able to make those payments. It’s important to consider all of the pros and cons of an IVA before choosing it.
IVA Pros and Cons for self-employed individuals are more flexible than their employee counterparts. A self-employed individual’s income fluctuates throughout the year. However, if you are self-employed, you’ll have to provide relevant documents to support your income. This will affect your monthly contribution.
Another pro of an IVA is that it allows you to write off some of your debt. This can mean up to 70 percent of the total debt. However, it is important to note that it can also hurt your credit rating. In the event of a bankruptcy, you’ll have to wait a lot longer before your credit score is affected.
Another benefit of an IVA is that creditors will not be able to take legal action and seize your assets. This means that you’ll have much less stress and worry while you pay back your debts. You won’t have to worry about losing your home, though you may need to remortgage to free up some equity. Additionally, your monthly repayments will be more manageable and more affordable with an IVA.
Another benefit of an IVA is that it’s cheap and safe. This solution also helps keep creditors in check as it prevents them from harassing borrowers. Creditors won’t be able to pressure you into making payments during the IVA, which is particularly helpful for borrowers who have been hounded by creditors. And once you’ve completed your agreement, you’ll no longer have to deal with them directly.
IVAs are generally seen as a better option for debt relief than bankruptcy. An IVA is also less likely to affect your employment prospects. The reason is that whereas bankruptcy is often a disqualifying factor for some occupations, an IVA doesn’t.
IVA Pros and Cons For Businesses was first seen on Apply for an IVA