What is an IVA?
An IVA is an agreement with your creditors to make a single reduced payment each month which lasts for a sensible period of time (normally 5 years). Once agreed, creditors are not allowed to add further interest or charges to your accounts by law. The agreement is fixed - meaning that creditors can not randomly demand changes to it. The arrangement is governed by the Insolvency Act of 1986. A common misunderstanding is that people think undertaking an IVA is like going Bankrupt. This is not the case. The IVA is specifically designed to avoid the many issues and stigmas surrounding Bankruptcy.

Pros and Cons of IVAs:

PROs

• Debt Free in 5 Years
• Telephone Calls and Payment Demands Stopped
• Interest and Late Payment Charges Frozen
• Single Monthly Payment
• Repaired Credit Rating
• Fixed, Legally Binding Agreement
• Protection from Court Action
• A Private Agreement
• Professional Status Unaffected

CONs

• Possible Release of Home Equity
• Minimum Level of Debt
• No Unsecured Borrowing During the Arrangement
• Stick to a regimented regime for 5 years
• Damaged Credit Rating
• Longer than Bankruptcy
• Pay back more than you will in bankruptcy
• You must include all creditors
  

For a more in depth look at pros and cons of IVAs then
IVA Pros and Cons click here ...