IVA Pros & Cons 

An IVA is a legal commitment, and the decision to enter into one should not be taken lightly. It is important that you understand both the Pros & Cons of an IVA agreement.

Our IVAs team and here to help, and we can answer any questions that you may have. Please call our freephone number on 0808 131 9103. 

IVA Pros 

  • Debt you cannot afford is written off.
  • Debt free in 60 months.
  • Interest and charges will be frozen on the debt.
  • Legally binding so your creditors can not change there mind once the IVA has been approved.
  • No need to sell your assets or risk losing them.
  • One monthly payment which is based on what you can afford to pay to your creditors after living expenses have been deducted.
  • It may be less of a struggle to meet your secured creditor commitments, as you are paying a lower amount to your unsecured debt.
  • Creditors will not be able to contact you during your IVA.
  • Avoid bankruptcy.
  • All legal action against your debt will stop.
  • Private creditor agreement, so it will not be advertised in your local newspaper.
  • Future career prospects should not be hindered.

IVA Cons

  • Three quarters of your creditors, by debt level, must agree to the IVA before it can go ahead.
  • You must continue to make these monthly payments for 5 years.
  • Failure to make the monthly payment means that bankruptcy proceedings can start against you.
  • You may have to remortgage your home to release some equity to pay back your creditors.
  • You may find it more difficult to get accepted for credit in the future. During the IVA term you will not be able to borrow any money.

For more information, please contact one of our expert IVA Advisors on 0808 131 9103. Alternatively fill in our Quick Enquiry form so we will call you back.



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Entering into an IVA may adversely affect your credit rating for up to six years from the date of approval.

Your property will be protected within an IVA but you may be required to release all or part of any equity during the period of the arrangement.

Failure to complete the term of an IVA can result in bankruptcy.

(In Scotland, a PTD is the equivalent to an IVA.)
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