Just like with everything in the
world coming with its good and bad sides, you need to know that IVAs have their
advantages and cons. In this article, there will be more details on iva
disadvantages for you to know of. Understanding the disadvantages of individual
voluntary arrangements will help you achieve the best results. Below are some
of the disadvantages to note:
1. You
might have to sell some of your assets and re-mortgage. If you have an
expensive home, an insolvency practitioner might require you to have some of it
released towards what you must pay your creditors. Mostly, these releases can
help ensure that the IVA proposal is accepted by creditors. If you have some
shares, jewelry, expensive clothing, artworks, etc. they might have to be sold
as well. Day to day living items such as televisions, washing machines,
etc.isn’t included in this. If you own a car that is very expensive, you might
be asked to sell it out and purchase one that is not so expensive. This is
clearly not one of IVA advantages.
2. It
will show up on the insolvency register. All individual insolvencies are
advertised in the London Gazette. This is a financial newspaper for the
industry. Nonetheless, most people do not read it. Also, it is not available
for purchase in normal shops. Your IVAs will as well be made available on the
public register of insolvencies.
3. Your
pension can be affected. Your insolvency practitioner might see or consider
pension contributions as a luxury that cannot be afforded. This means you might
be asked to stop making pension payments. During IVA durations you will not
contribute to retirement plans, this means your retirement proceeds will be
affected negatively.
Iva pros and cons when clear will
help you have every need met as it is required. To get more information #what are some advantages of iva.
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