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Learn about IVAs
An IVA is a formal method of debt repayment that's agreed between you and your creditors which means you'll pay off a percentage of your debts over a fixed period of time (typically over 5 years).
- What is an IVA?
- What are the advantages of an IVA?
- What are the disadvantages of an IVA?
- How much debt will you have to pay back with an IVA?
- Will you lose your house?
- Will you lose your assets?
- What are the alternatives to an IVA?
- How long does an IVA last and what effect will it have on your credit rating?
What are the disadvantages of an IVA?
It does sound good to be able to write off a large portion of your debt in just 5 years, but there are some drawbacks to IVAs that you should know about before considering starting one.
- 75% of your creditors have to agree to it - if more than a quarter of them don't think they'll get enough of their money back from it, they can block your IVA and you may have to consider Bankruptcy or a Debt Management Plan instead.
- It could take up to 4 months for the creditors records to be updated and for them to stop calling you.
- An IVA will appear on your credit file for 6 years from the date you start it - after 6 years it will be removed.
- If you don't keep up with the payments you've agreed with your creditors, they can take you to court and force you into Bankruptcy - this could affect your future earnings and credit much more severely.
An IVA will leave you with problems obtaining credit in the future, so it's best to compare all the debt solutions available before you make your final decision.
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Our debt solution partner's qualified advisers will explain all the options available and help set up a debt solution that's right for you.
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