Our IVA debt solution is
fast, easy, proven…
and FREE!

Call the IVA Helpline: 0800 195 9399

Call the IVA Helpline: 0800 195 9399
Our IVA debt solution is
easy, tested and proven…
and it’s FREE!

IVA Pros and Cons

Although not exhaustive, following are the most common IVA pros and cons.

Pros

  • Creditors must freeze all interest and charges and they will not contact you during the IVA
  • Once an IVA is arranged, your creditors can’t take legal action against you so long as you make the one low monthly IVA payment
  • The process is simple, quick, private and does not require you to pay fees or costs, which a bankruptcy petition does
  • Once the final IVA payment is made, any outstanding debt is written off.
  • Your home is not at risk as it is in Bankruptcy.
  • You can be a company director whilst you are in an IVA whereas you can’t be a company director if you are a bankrupt.
  • You make one low monthly IVA payment over a fixed period, normally five years.
  • The IVA is discreet and can be used by professionals, forces personnel and the police without damaging career prospects.
  • An IVA is a private matter between you and your creditors. There will be no publicity in the local papers as there often is with a bankruptcy.

Cons

  • An IVA will only deal with unsecured debts (mortgages for example, are secured debts and the outstanding balance will not be reduced by an IVA)
  • Your credit rating will be adversely affected and it may take some time for your credit rating to repair. You will not be able to take further unsecured borrowing during the term of the IVA unless your IVA supervisor approves it.
  • During the period of your IVA there will be broad brush restrictions on your expenditure but it’s not micro managed. Income and expenditure are normally reviewed once a year, and your payments may go up as well as down if your circumstances change.
  • If you’re a home owner you may have to release some available equity from your property through a re-mortgage. If you’re unable to re-mortgage, your IVA might be extended for up to 12 months.
  • Although your name will not published in the newspaper, your IVA will be entered on the government insolvency register, which is a searchable public database.
  • If you don’t make your monthly IVA payments, your IVA could fail which could lead to one of your creditors making you bankrupt.