IVA as a Debt Solution

When debt becomes difficult to manage it is time to seek expert advice. Finding the right Debt Solution is never easy, and what works for someone else may not work for you. IVAs can offer you free advice on your debt and help you to find a debt solution to suit your personal circumstances.

As a debt solution, an IVA will reduce your monthly repayments to suit your personal situation and can write off any unaffordable debt. No other debt solution can offer this, except Bankruptcy.

IVA is a piece of Government legislation and your eligibility is dependant on a number of different criteria. The best way to see if you qualify is to contact our IVA team, who can talk you through your finances and help to see if an IVA is right for you.

Other Debt Solutions:

If you think that an IVA is not the solution for you, there are other options that can help you become free of debt, such as:
A Debt Management Plan:
Like an IVA, a Debt Management Plan is a debt repayment plan arranged with your creditors. A Debt Management Plan is not a legally binding contract and no amount of your debt can be written off. Creditors may be willing to freeze interest or charges on your debt, but only an IVA can guarantee this.

Debt Management Plan has no fixed term meaning that it will take you longer to pay off all your debt, whereas an IVA only lasts for 60 months.

However, for an IVA you need to have a minimum of £15,000 in unsecured debt, and if you don’t then a Debt Management Plan may be your best option.

For more information try out the IVAs 1 Minute Debt Test - The results will reveal what debt solution is right for you.

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.)