Can an IVA help me?
Advantages of an IVA:
- Affordable monthly payments over a fixed period, usually 5 years.
- Creditors must freeze all further interest, cannot take further legal action against you and will not contact you during the IVA.
- Your home is not at risk as it could be in Bankruptcy
- Once the final payment is made, any outstanding debt is written off by the creditors.
- The IVA is discreet and can be used by professionals, forces personnel and the police without damaging career prospects.
Disadvantages of an IVA:
- Although the advantages of an IVA are significant, undertaking an IVA is a serious matter. As such, there are some things that you must bear in mind.
- The IVA will be recorded on your credit file. This means that you will not be able to take further unsecured borrowing for the period of the IVA.
- Once the IVA is completed (normally after 5 years), you can borrow again. However, it may take some time for your credit rating to repair.
- If you are a home owner, during the course of the IVA you may have to release available equity from your property to increase the overall settlement offer to your creditors.
- Whilst your name is not published in the newspaper, it should be pointed out that the IVA will be entered onto the government insolvency register, which is a searchable public database.
- Whilst you can arrange to miss IVA payments in certain circumstances, if you do not make the IVA contributions as agreed with your IP, your IVA could fail which could lead to bankruptcy.