What is the difference between IVA & Debt Relief Order?

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Moses007

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Post by Moses007 » Thu Aug 08, 2019 10:50 am
IVA & Debt Relief Order, which one is best to get out of debts?

Foggy

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Post by Foggy » Thu Aug 08, 2019 11:09 am
It depends on your own set of circumstances. Both will destroy your credit rating for at least 6 years and both have different criteria for suitability.

For an IVA you need to be able to make payments over 5 or 6 years, and be prepared to release equity if you are a home owner. https://www.gov.uk/options-for-paying-o ... rangements

For a DRO, debts must be less that £20k in total and you cannot have any assets or disposable income over £50 a month. You are released from a DRO after only 12 months. https://www.gov.uk/government/publicati ... lief-order

There are, of course, other considerations and criteria and you would be better advised if you discussed the whole situation you are in with an insolvency practitioner or two. A reputable firm will explain the pros and cons of all solutions for you to make an informed choice.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

bowline

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Post by bowline » Sun Aug 11, 2019 2:35 pm
You might do better to talk to a firm that sets up DROs. Very few IVA firms do. Try your local Citizens Advice.

If you meet the DRO criteria it will always be better than an IVA. No exceptions.

kallis3

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Post by kallis3 » Sun Aug 11, 2019 3:25 pm
Speak to several companies before making a decision.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk

Foggy

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Post by Foggy » Sun Aug 11, 2019 3:32 pm
Sun Aug 11, 2019 2:35 pmbowline wrote:
You might do better to talk to a firm that sets up DROs. Very few IVA firms do. Try your local Citizens Advice.

If you meet the DRO criteria it will always be better than an IVA. No exceptions.
Unless your employment terms forbid them or you simply wish to try to pay as much as possible towards your debts --- granted that if you truly cannot afford more than £50 per month (disposable income) this might well be the only option. But ...there are always exceptions.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Lisa Thomas

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Post by Lisa Thomas » Tue Aug 13, 2019 1:53 pm
My short videos here should outline the key differences:

https://youtu.be/TgalT1vhn6M

https://youtu.be/BtgpEX5mNDg

https://youtu.be/zrQruCDiw5w
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk

Moses007

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Post by Moses007 » Wed Aug 14, 2019 9:28 am
Thank you all for your advice

I have a question which one is better IVA or Debt Relief Order to get rid off debts quickly without any extra burden? Please give advice if any.....

kallis3

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Post by kallis3 » Wed Aug 14, 2019 9:49 am
We cannot give specific advice - you need to speak to a few companies and go through your options with them.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk

Foggy

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Post by Foggy » Wed Aug 14, 2019 10:26 am
A DRO,if you qualify, is over within a year,whereas an IVA will take 5 or 6.
If you qualify for an IVA, you will not qualify for a DRO!

Everything will depend on the level of debt, any assets you have and the amount you can afford to repay (according to agreed guidelines, not according to you!).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Lisa Thomas

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Post by Lisa Thomas » Thu Aug 15, 2019 8:42 am
It really depends on your circumstances but an IVA is often more onerous.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
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