IVA Home

Vincent Bond View all sponsors
IVA PROS AND CONS
What are the pros and cons for an IVA

IVA PROs

IVA Pro Debt Free in 5 Years
An IVA will last for a fixed period of time, normally no longer than 5 years.

IVA Pro Telephone Calls and Payment Demands Stopped
Once the IVA is agreed, your creditors by law are no longer allowed to demand payments from you either by telephone or letter.

IVA Pro Interest and Late Payment Charges Frozen
After the IVA has been put in place, your creditors cannot add further charges or interest to any of your accounts covered by the agreement by law.

IVA Pro Single Monthly Payment
At the beginning of the arrangement, you agree with your creditors what you can afford to pay each month. In some cases, you can pay a one-off lump sum.

IVA Pro Repaired Credit Rating
Once you have successfully completed your arrangement, you will be allowed to borrow money and your credit rating will start to improve. You will not be credit blacklisted for life.

IVA Pro Fixed, Legally Binding Agreement
Once agreed, the IVA is legally binding (see glossary) on all the creditors. You will know exactly where you stand and exactly how long it will be before you are debt free.

IVA Pro Protection from Court Action
Once an IVA is in place, your creditors are not allowed to take further legal action against you as long as you stick to the terms of the arrangement.

IVA Pro A Private Agreement
If you undertake an IVA, it is a private matter between yourself and your creditors. No publicity in the local papers. However your name can be searched in the insolvency register which is available on the internet.
See: http://www.insolvency.gov.uk/eiir/

IVA Pro Professional Status Unaffected
Regardless of your professional position (e.g. doctor, solicitor or accountant) you can carry out an IVA without any adverse effects to your job.

IVA CONs

Cons IVA Possible Release of Home Equity
If you have any equity in your property or any other significant valuable assets, you may be required to release some or all of this as part of the IVA agreement.

Cons IVA Minimum Level of Debt
Usually you will only be able to undertake an IVA if your total unsecured debt is more than £10,000. In addition, you will usually need to be able to afford a monthly payment of at least £120.

Cons IVA No Unsecured Borrowing During the Arrangement
While you are in an IVA, you will not be able to use your store or credit cards. These must be cut up. However, it may be possible to change an existing mortgage or take a new one while you are in an IVA. However you will be able to use prepaid cards.

Cons IVA Stick to a regimented regime for 5 years
Failure to maintain control of your finances and keep up your IVA payments will mean that you may be bankrupted. However you may be able to take payment holidays and you may be able to miss payments for extreme circumstances, but this will extend the period of you IVA.

Cons IVA Damaged Credit Rating
Your credit rating will not be as badly damaged as if you went bankrupt but you will still be unable to borrow for 5 years. You will also have a period after your IVA where it may be hard to get credit. This period varies but should be less than a year.

Cons IVA Longer than Bankruptcy
An IVA will last for 5 years compared to bankruptcy which will usually only last 1 year unless you have a payment order and this will last three years.

Cons IVA You will pay back more than you will in bankruptcy
In an IVA you will pay back about a significant amount of your debt (e.g. 20%-50%) as opposed to bankruptcy where you will pay back a minimum amount (which could be as little as 0).

Cons IVA You must include all creditors
All creditors must be included and you cannot make separate arrangements with each one (which can be done in a DMP).




ASK THE IVA EXPERTS A QUESTION:
Ask our experts a question, it will be posted on our forum
  • Simply complete form and you will get an answer from our experts
    (multiple replies within an hour *)
  • Your Question:
  • Your First Name:
  • Your Email:
  • Your Mob/Tel:

    (optional)
  • Please Enter the Text in the image: Captcha


  • The Question will go to our industry wide panel of experts:
    Melanie Giles Bridgewood Finance Solutions Debt Free Direct Bright Oak
    Mc Cambridge Duffy Andy Davie CCCS Vincent Bond and Co Ltd
  • * The question will be posted on our forum, we will email you the location
IVA CALCULATOR
IVA CALCULATOR
  • Do I qualify?
  • How much written off?
  • Monthly payment amount?
  • Total Debt:
    £
  • No of creditors:
  • Income:
    £
  • Expenses:
    £
  • Own home?
    Yes No
  • NOTE:

    An IVA is not for everyone. This calculator will simply tell you whether it is an option for you.

  • Live Help
Social Media
Clear my debt

-Talk to an iva.co.uk advisor
-Relaxed chat, discuss options
-No upfront fees

  • Name
  • Email
  • Tel
  • Total Debt
  • What's the sum of 2 + 6 ?
    (spam protection)
Chat Now
Live Help
IVA.co.uk Newsletter
Reviews for IVA.co.uk
IVA.co.uk is rated 4.9 on a scale of 5 based on on reviewcentre.com.
Latest review:
So Glad We Did It - by , 19/09/2012
5/ 5stars
I have to admit to being less than keen to investigate the idea of an IVA as we had already gone down the route of a DMP with another company but this hadn't worked out. Hubby pushed for an IVA and started the ball rolling, however once we had started the process i soon realised how beneficial this would be. Andy Davie at Vincent Bond was fantastic, he went through the whole process with us fully and explained everyhing thoroughly. We are now almost 2 years in and haven't looked back.