IVA Benefits

Once your IVA has been accepted, you could benefit from:

Lower repayments

Repayments to creditors are based on what you can afford – not how much you owe.

Debt forgiveness

Once you have made the agreed contributions any remaining money owed is written off.

A sense of control

An IVA allows you to regain control of your debts and work towards debt freedom

Debts cannot increase further

Frozen interest and charges so that your debts do not increase.

Legal protection

Creditors cannot pursue you for their debt or take legal action.

Knowing when you’ll be debt-free

A fixed agreement usually lasting five years, after which any remaining unsecured debts will be written off.

Home is protected

An IVA can help safeguard your property and ensure future affordability even after the IVA.

Stress reduced

You’ll be less stressed knowing IVA will stop contact from your creditors and your payment are affordable

Avoidance of bankruptcy

An IVA enables you to continue to trade if you are self-employed or have a trading business.

Better able to afford other financial commitments

An IVA can catch unknown debts such as unpaid tax or overpaid tax credits.

IVA Considerations

As with any insolvency process, there are consequences of entering into an IVA. These include:

IVA can fail

If you don’t stick to the agreed terms of your arrangement and you don’t speak to your Insolvency Practitioner or their team your arrangement may fail.

Risk of Bankruptcy

If your arrangement fails your creditors could again take action against you and interest may resume on your debts.

Restrictions on expenditure

There are industry guidelines for your expenditure we have to adhere to – but you won’t be expected to live in poverty.

Assets are a factor

If you have assets then you may be asked to make these available to your IVA, e.g. savings plans.

Your property

If you are a homeowner, you may be asked to re-mortgage your property in the 5th year of your IVA, to release any equity to creditors. There are many situations where a re-mortgage is not required which we can explain to you, and if a re-mortgage is not available an IVA can be extended for 12 months which is generally what happens in most cases.

Credit Rating

An IVA will appear on your credit file for up to 6 years from the date it commences. During this time it may be difficult for you to obtain credit.

No guarantee of acceptance

Creditors can reject an IVA, but there are usually specific reasons for this, and we can negotiate with creditors or even re-propose the IVA if required. We do not put forward IVA without a high expectation of approval.

Not private

An IVA will be recorded and entered onto a public register, but someone would need to be specifically looking for you on it to find you.

Please call 0800 014 9675 or a contact us if you have any questions or require some assistance with your debts.