Myth: An IVA is right for everyone
False – an IVA can be a great solution for many people, but it’s not the only option. Our debt advisors will look at your full financial picture and help you explore all available solutions – including those outside of an IVA – to find what’s best for you.
Check my optionsMyth: I’ll lose my home
False – your home is protected. If you own property, depending on your level of equity, your IVA might be extended by up to 12 months instead of requiring you to remortgage or sell. Your Insolvency Practitioner (IP) will explain how equity is treated and make sure everything is clear from the start.
How property and equity work in an IVA →
Myth: I will have to pay expensive fees in an IVA
False – There are no upfront or extra fees. All IVA-related costs (like legal, management and admin fees) are built into your monthly payment and only charged if your IVA is approved. You’ll never pay more than you can afford.
Myth: People will find out about my financial situation
It’s a possibility – Your IVA will appear on the Insolvency Register and your credit file, but these aren’t as public as people think. The register is online, and your credit file is private (only lenders and authorised parties can access it), and most employers don’t need to know unless your job involves financial checks.
Learn more about the Insolvency Register and how an IVA affects your credit score.
Myth: I can’t change my IVA once it’s agreed
False – Your IVA is designed to adapt to your situation. If your income drops, you might be able to reduce payments. If your circumstances improve, your IP will help you adjust fairly. They’re there to support and guide you throughout.
Myth: One missed payment means my IVA will fail
Missing a payment doesn’t mean your IVA ends, but it’s important to talk to your IP as soon as possible. They may be able to adjust your plan, pause payments temporarily or work out a new arrangement. If you ignore the issue and miss several payments, then yes, your IVA could be at risk.
Myth: I won’t be able to save
False – Your IVA budget is built around essential living costs and includes a little breathing room. You might not be able to save much each month, but small savings are encouraged to help cover emergencies.
Myth: My partner will be affected
False – Your IVA is personal to you. Your partner won’t be responsible for your debts or asked to contribute. Creditors will want to check that household costs are shared fairly – but that’s all.
Myth: I can’t get an IVA if I’m on benefits
False – It depends on your overall situation. You can still enter an IVA if you’re receiving benefits only, as long as it’s the most suitable option for your situation. If benefits are your sole income, another debt solution may sometimes be more appropriate. If benefits are part of a wider budget – for example, alongside wages or a partner’s contribution – you may still qualify. A debt advisor will review everything and guide you toward the right solution.
Thinking about an IVA but unsure what’s right for you?
Get free debt advice online or call 0800 316 1833 to speak to one of our experts. We’ll explain the solutions available, check what you may be eligible for and help you choose the option that best fits your situation.
See if an IVA is right for me