An IVA is not a one-size-fits-all solution and for some people, it’s not always the best choice to use to get out of debt.
The most common mistake people make is to enter an IVA simply because they are afraid of bankruptcy. When this happens, people tend to enter an IVA repayment solution that they really can’t afford, and one that is doomed to fail.
Ultimately the goal when entering an IVA is to use it as a legal, confidential and interest elimination tool to get out of debt within five years. But if you can only make a couple years of monthly payments, it does not help you at all. If you can’t make your IVA payments along the way and your IVA fails then all the money you paid into your IVA will go towards the balance owed but any debt forgiven in the IVA will be added right back to your balance owed.
With an IVA you have to make it all the way to the finish line. There is no second place or almost did it.
If you don’t think that an IVA is right for you or you’re in an IVA and can’t afford the monthly payments anymore, then it might just be that bankruptcy is right for you. Extensive bankruptcy information can be found at the Bankruptcy Information Centre.
Tags: bankruptcy, defailt, fail, failure, iva
