You could be at risk of losing some of your assets if in any case you have an equity in your property since the Individual Voluntary Arrangement plan will include this in the agreement. The level of debt is minimum since you can only qualify if your total bills have exceeded 12,000 dollars. You have to include all the creditors in the arrangement plan and ensure they have all accepted the plan.
Individual Voluntary Arrangement is a long term payment of up to five years unlike bankruptcy which may take only three years. Some of your creditors may not wait that long and therefore, you may not qualify. You may end up using more money in this debt elimination method compared to bankruptcy since it takes few years to complete all the bills.
Once you are enrolled in this plan, you will not be able to acquire unsecured loan for the five years of payment. However, if you had opted for bankruptcy, the credit rating could have been made worse. Again, if in any case you have failed to complete the agreement payments, your case could easily result to bankruptcy. If you miss some payments due to unavoidable circumstances, the payment period could be prolonged thereby increasing your total bills.
Whichever method you decide to choose other than Individual Voluntary Arrangement plan, its always good to commit yourself in the repayment of bills. This is the only way out that can put an end to all your financial stress. Its also by paying your bills that you will be able to reach your financial stability.
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CONS OF INDIVIDUAL VOLUNTARY ARRANGEMENT
