IVA Pros and Cons

Advantages of an IVA

  1. Only Pay What You Can Afford You will only be required to pay into your IVA what you can actually afford to pay. Your creditors can't expect you to pay any more than you can afford. Call us now for free on 0800 856 8569 Apply for an IVA top
  2. Fixed Repayment Term. Your IVA will last for a fixed time period, of normally 5 years. Once creditors agree, they can't change their minds and impose a longer repayment term. Call us now for free on 0800 856 8569 Apply for an IVA top
  3. Protects Your Assets An IVA will protect your assets, such as equity in your home, by preventing your creditors from forcing you to sell up in order to pay them back. Call us now for free on 0800 856 8569 Apply for an IVA top
  4. Protects Against Legal Action An IVA is a legally binding agreement and, once accepted, all creditors must refrain from taking any legal action to recover unsecured debt included in the IVA. Call us now for free on 0800 856 8569 Apply for an IVA top
  5. Stops Interest Charges Creditors lose the right to charge interest on your debts once your IVA is place, ensuring that your debts stop growing. Call us now for free on 0800 856 8569 Apply for an IVA top
  6. Stops Creditor Fees And Charges An IVA stops creditors from charging late payment charges or fines for falling into arrears. Call us now for free on 0800 856 8569 Apply for an IVA top
  7. Stops Creditor Contact Once an IVA has been accepted, creditors must refrain from contacting you directly, instead they must communicate with you through your Insolvency Practitioner. Call us now for free on 0800 856 8569 Apply for an IVA top
  8. Protects Your Privacy Unlike the case in bankruptcy, your PAYE tax code remains unchanged during an IVA, which minimises the chances of your employer being made aware of your financial circumstances. Call us now for free on 0800 856 8569 Apply for an IVA top
  9. Protects Your Income An IVA provides an alternative formal debt solution to any person whose contract of employment prohibits them from becoming bankrupt. Call us now for free on 0800 856 8569 Apply for an IVA top
  10. Protects Hire Purchase Agreements An IVA can allow you to prioritise payments to an HP agreement, such as those for an essential purchase like a family car, over your unsecured debts in the IVA. Call us now for free on 0800 856 8569 Apply for an IVA top
  11. Possible Debt Write-Off Any unsecured debt remaining unpaid on the successful completion of the IVA must be written off by the creditors. Call us now for free on 0800 856 8569 Apply for an IVA top

Disadvantages of an IVA

  1. Your Credit Rating An IVA will have an adverse impact on your credit rating for 6 years from the moment it is accepted. Call us now for free on 0800 856 8569 Apply for an IVA top
  2. Windfall Clause An IVA will require you to notify your Insolvency Practitioner in the event that you receive a financial windfall. You will be expected to surrender the windfall into your IVA for the benefit of your creditors. Depending on the size of the windfall, you may be required to repay your creditors their original debt in full and also cover all the outstanding IVAs costs. Call us now for free on 0800 856 8569 Apply for an IVA top
  3. Annual Reviews You will be subject to an annual review on the anniversary of your IVA's start date and, if you can afford to increase your payments into the IVA you will be legally obliged to do so. Call us now for free on 0800 856 8569 Apply for an IVA top
  4. Restricted Banking Facilities You will be restricted to holding only a basic bank account bank account for the duration of your IVA. The basic bank account must be provided by a neutral bank, and must have no overdraft, credit card or cheque book facilities. Call us now for free on 0800 856 8569 Apply for an IVA top
  5. Threat of Bankruptcy If you want to cancel your IVA you would be required to notify your Insolvency Practitioner and, whilst unlikely, this could result in you being made bankrupt. Call us now for free on 0800 856 8569 Apply for an IVA top
  6. Restricted Budget Payments into an IVA are based on affordability, however, you will be expected to manage your finances carefully and remain within a sustainable yet realistic household budget. Call us now for free on 0800 856 8569 Apply for an IVA top
  7. Strict Repayment Schedule You must maintain your monthly IVA repayments as agreed. Failure to maintain your IVA payments without prior permission from your Insolvency Practitioner could result in your IVA falling into arrears which may lead to your IVA being terminated. Call us now for free on 0800 856 8569 Apply for an IVA top
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