Pros & Cons of an IVA
Learn more about the advantages and disadvantages of an IVA.
- Consolidate your debts into one plan
- Write off all unaffordable debt
- One affordable monthly debt repayment
- May not be suitable for all, fees apply in solutions we offer and they may affect your credit file.
Does an IVA sound too good to be true?
Below is the Pros and Cons that are important to remember when looking at the best solution for you to resolve you debt.
As always we recommend seeking professional and free debt advice before choosing any solution and one of our knowledgeable and non-judgmental team can do this with you via a telephone appointment just get in touch!
Benefits of an IVA?
- Write off all debts you cannot afford to repay over a five year period.
- One affordable monthly repayment.
- There are no setup fees and you do not start paying until your IVA is approved.
- After you plan finishes, usually five years the remainder of the debt is legally written off.
- Interest, charges and debt collection stop. This means the amount you owe stops getting bigger.
- Our insolvency practitioner deals with creditors on your behalf.
- Creditors included in your IVA cannot to take legal action against you.
Risks of going through Bankruptcy?
- Your creditors could ask you to reduce living costs they feel are too high
- You may have to sell any valuable assets you own
- If you own property, you may need to remortgage and pay the money as a lump sum into the IVA
If you do not complete your IVA;
- None of your debts will be written off
- You will have to pay them all back
- Your creditors will contact you again
- Your creditors can add any missed interest and fees
- There is a chance you could be made bankrupt
