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Old 17th March 2020, 04:19 AM   #1
carol1
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is IVA safe?

I need a loan because I wanted to start my business. But I am worried about that if the lenders will disturb me before the time. Then I heard about IVA from nationaldebtlines.co.uk/individual-voluntary-arrangements/ and learned that it will give benefit when I will repay the loan and the lenders can't disturb me. Is this agreement is safe?
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Old 17th March 2020, 06:51 AM   #2
Elaedith
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As far as I know, an IVA is an alternative to bankruptcy if you have more debt that you can manage. The creditor doesn't have to agree to one (although they probably would if the alternative is bankruptcy), and it is expensive to set up because it needs to be done by an insolvency practitioner. If a creditor has agreed they cannot change the terms of the agreement, but it may still have a big impact on your credit rating (though not as much as bankruptcy).
In other words, it would be a last resort if your business failed, and not something you should be expecting to count on when taking out a loan. Perhaps somebody who knows more can add to this.
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Old 17th March 2020, 07:41 AM   #3
Leftus
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Originally Posted by carol1 View Post
I need a loan because I wanted to start my business. But I am worried about that if the lenders will disturb me before the time. Then I heard about IVA from nationaldebtlines.co.uk/individual-voluntary-arrangements/ and learned that it will give benefit when I will repay the loan and the lenders can't disturb me. Is this agreement is safe?
Not a lawyer, but I did some reading and I think you've got the proverbial cart in front of the horse. Why would the lender come after you before time? A loan is a contract, after all, so there is no way they can come after you before the time and be in the right. They would be in breach of contract and couldn't collect a dime until it is scheduled.

I would suggest you talk to some sort of legal professional on debt collections, but I think your fears are unfounded. Perhaps it's more a fear of uncertainty in your business plan than anything else. But lenders breaking the terms of the loan is nothing to worry about. Unless it's from Wells Fargo. They are absolute monsters.
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Old 17th March 2020, 10:58 PM   #4
psionl0
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Originally Posted by carol1 View Post
I need a loan because I wanted to start my business. But I am worried about that if the lenders will disturb me before the time. Then I heard about IVA from nationaldebtlines.co.uk/individual-voluntary-arrangements/ and learned that it will give benefit when I will repay the loan and the lenders can't disturb me. Is this agreement is safe?
AFAIK if you are making your payments on time every time then the banks won't come after you. They are more worried about delinquents.

If you are worried that you will fall behind on your repayments (hence the IVA) then you might need to reassess whether this business is right for you. In any case, have your loan agreement reviewed by a lawyer before signing on the dotted line to avoid unpleasant surprises.
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