So far, we have only talked about how IVA happens to be beneficial for a lot of people because it can save them from losing their property and going bankrupt. However, I must also mention that there are some minor inconveniences as well. The reason why most people don’t look at them, or don’t discuss them is because at the given time, they are so caught up in all the other details, it becomes a bit difficult for them. With that in mind, today, we are going to take a look at some of the disadvantages of IVA.
As always, the “can you get an IVA in Scotland?” question is looming. Yes, you can, but in Scotland, IVA is known as Protected Trust Deed, and the required unsecured debt is also lower, so it is easier for people to enter Protected Trust Deed. As far as the disadvantages are concerned, I am listing them down below.
It Will Negatively Affect The Credit Rating
If you enter into the IVA, keep in mind that your credit rating will have a negative effect. This negative effect will stay for at least a year after your IVA’s been completed. So, before you go ahead and take part in it, you must know about this.
IVA Does Not Cover All Debts
Another important thing that you need to understand about IVA is that it does not cover all the debts there are, and it also largely depends on the creditor to get into this agreement. As for the debts that are not covered, some of them include penalties, as well as fines that are imposed by the government. So it is really important to consider it all. If a creditor does not agree to IVA, there is not much a debtor can do.