Advantages of an IVA
You’ll only repay what you can afford
Your monthly payments are based on your income and essential living costs. At the end of the IVA, any remaining unsecured debt included in the arrangement is written off.
You’ll have a clear end date
Most IVAs last five or six years, depending on your circumstances. Once completed, your remaining (included) debts are cleared, and you can start rebuilding your financial future. Learn more about how long an IVA lasts here.
Creditor and legal action stop
Once your IVA’s approved, your creditors can’t chase you for payment, apply interest or charges or take further legal action – as long as you stick to the agreement.
You won’t be forced to sell your home
If you’re a homeowner, you won’t be required to sell your property. Depending on how much equity you have, your IVA may simply be extended from five to six years. Learn more about how property and equity work in an IVA here.
Payments are based on what’s affordable and sustainable
Your monthly payments are tailored to your income and essential living costs, so they’re more manageable.
Interest and charges are frozen
As soon as your IVA’s approved, all interest and charges on included debts are frozen.
Support every step of the way
From the moment you first reach out for help to the end of your arrangement, you’ll have expert guidance and support – including annual reviews to make sure your payments stay affordable.
Things to consider before choosing an IVA
It needs creditor approval
Your IVA proposal must be accepted by creditors (who vote) holding at 75% (by debt value) of voting creditors agree. Most IVAs we propose are accepted – but approval isn’t guaranteed.
You’ll need to stick to the plan
An IVA is a legally binding agreement. You must keep up with your payments and notify your Insolvency Practitioner if anything changes. If your IVA fails, this could result in a petition for bankruptcy.
Your budget may feel tight
IVA payments are based on what’s affordable – but it may still mean reducing spending on non-essential items for the duration of the arrangement.
It will affect your credit rating
An IVA will remain on your credit file for six years from the date it begins, which may impact your ability to access credit in the short term.
How an IVA affects my credit score.
It’s listed on a public register
Your IVA will appear on the Individual Insolvency Register, a government-run online record.
Fees apply
You’ll pay fees for the setup and ongoing management of your IVA. These are included in your monthly payments – you won’t need to pay anything extra. Learn more about IVA fees and costs here.
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.
