For many people experiencing debt issues, an IVA is a good option for them to avoid bankruptcy.  They may have property to protect, or a surplus income each month, that while not enough to service the debts at the agreed contractual payments, is enough to pay something, and they would be ordered to pay into a bankruptcy, if they chose that route.

So for many, an IVA is a good option.  But what about being in an IVA and changes that may come up or occur?  An IVA is a five (5) year deal, you are making payments of an agreed amount for this term of five years and in the end you are debt free.  Five years, while not a long time, is a stretch of time and it is difficult to predict what may occur during this time.

One thing we have seen and all are experiencing is a rise in the costs of the basics, utilities, food, petrol, etc.  Although, the truth be told, petrol has come down considerably over the past couple of months.  But overall costs have gone up, and for many, equity in properties has gone down.

Firstly, no one can predict what the next five years will bring, so you have to enter into the IVA world looking at it in the here and now and as a way to avoid bankruptcy.

Secondly, while not much can be done in the first year of the IVA, there are options later on if your circumstances change.  There is the possibility of having your monthly payments reduced for a period, or even a payment holiday.  And if you experience a short-term or transient reduction in income, and miss a payment or two, in most instances s long as the missed payments are made up by the end of the IVA’s yearly review, all will be fine.

This is not meant to be an exhaustive detailed measure of IVA’s or entering into one.  It is just to make you aware that while no one can predict the future, taking control of our debt issues now is important and an IVA may be an option.  Holding out, or putting off a solution because you are unsure what the next few years will bring, while understandable, does not change your circumstance, or address the issues.  One thing that will remain if you do nothing, are the debts.

If you need help or more information about an IVA, just ask, I'll be happy to help.