Individual Voluntary Arrangement (IVA)
IVA Pros & Cons
• We help you to calculate what you can afford to pay. Under the arrangement
you then make just one payment to your client account, via standing order each
month. The payment amount is the same over the whole period of the arrangement,
unless your circumstances change and you can afford more. Your circumstances will
normally be reviewed annually.
• Once your IVA is approved, all of your creditors are legally bound by
its terms, as long as you keep paying your agreed monthly sum.
• Once the agreed term of your Individual Voluntary Arrangement is over
(usually after 5 years) you have no further obligations to your creditors. At
this point you stop paying the monthly sum, and can start afresh.
• Your employment will probably not be affected. In fact, your employers
will not know about your IVA unless you choose to tell them.
• Unlike bankruptcy, your details will not be advertised in the local press
and you are not excluded from running a business, nor will it lead to many professions
terminating your employment.
• If your total unsecured debt (e.g. credit cards, loans, etc but excluding
mortgage if you have one) is less than £15,000 you will not qualify
• If you fail to keep to the terms of the IVA your creditors can take further
action, and this may result in bankruptcy.
• If you have equity in your house (i.e. it is worth more than you paid
for it) you may have to re-mortgage towards the end of your IVA and release funds
to your creditors. Don't forget, your creditors are still writing off the debt
you can't afford to repay and the alternative could well be bankruptcy whereby
you could lose your property altogether.
• The IVA stays on your credit history for one year after your IVA ends.
This may affect your credit rating although some lenders view your proven ability
to make regular payments over 60 months favourably.
• If you fail to keep to the terms of the IVA, your creditors can take
further action, and this may result in bankruptcy.
• You are not allowed to borrow during your IVA.
To find out the most suitable solution to your debt problems call
us now on 0161 834 7025.
For more information about IVA please see:
IVA • IVA
FAQ • Other Debt Solutions
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