IVA too has many pros. Some of the IVA advantages are discussed here below. IVA can be for anyone, may it be individual, partner or sole trader. Individual Voluntary Arrangement enables partner or sole trader to do trading & earn income so that they can repay their creditors without losing any of their assets. The debtor doesn’t have to pay the full amount of the debt. If he follows the terms and conditions of the agreement then he will be free from debt within five years. The debt which the debtor owes may be written-off up to 75%.
IVA is formally binding solution; therefore, to the applicant’s debt, no charges or interest can be further added. Once the creditors have agreed upon the agreement, they cannot claim for the full money as they are prohibited by the law to do so. Neither can they take any action against the debtor. The agreed monthly plan for payment will not change until and unless the debtor’s level of income increases dramatically. IVA is not a public agreement as it is just in between the debtor, his creditor and his advisor. It cannot be published in local newspaper because it can be bankruptcy case.