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Not sure if an IVA is right for you?
- Do I owe two or more unsecured lenders £15,000 or more in total?
- Am I unable to afford my monthly debt repayments?
- Could I commit to making lower monthly payments for five years?
If you can answer 'yes' to all three questions, an IVA may be the ideal solution to your debts.
If you can't, there may be another solution that could help.
To see the alternatives that we can offer, click here.
IVA pros and cons
Before you decide whether an IVA is right for you, please take a moment to check out the advantages and disadvantages below.
- An IVA will reduce your monthly payments. Your payments to your IVA will be based on what you can afford after taking into account all your essential expenses, from mortgage/rent and utility bills to food, petrol and clothing costs.
- An IVA will help you meet your essential expenses. Your IVA payments will be calculated to leave you enough for your other commitments.
- An IVA is a legally binding agreement. Once the IVA has been approved, you'll be protected from any action by your creditors (including trying to make you bankrupt) and as long as you stick you your side of the the agreement, they won't be allowed to change their minds.
- An IVA will protect your home. Unlike bankruptcy, an IVA is extremely unlikely to force the sale of your property if you're a homeowner - and if you're a tenant, your landlord won't even be told you're in an IVA.
- An IVA is a serious commitment. If you don't maintain your side of the agreement, your IVA might fail leaving you responsible for the outstanding debts and costs. You'd have to consider other ways of paying off your debt, whether that means entering a debt management plan or thinking about declaring yourself bankrupt.
- If you're a homeowner, you may be required to free up equity in the 5th year. Your creditors will expect you to pay as much as you can afford, and this includes contributing some of the value of your property.
- An IVA will restrict your ability to borrow while it's in progress. You'll be unable to access more than £500 of credit without talking to your IP (Insolvency Practitioner).
- An IVA will last longer than bankruptcy. Bankruptcy could clear your debts more quickly - potentially in as little as 1 year (although there are restrictions with bankruptcy that should be considered carefully).
- An IVA will stay on your credit history for a year after it's finished. This can increase the cost and/or difficulty of obtaining credit for that year.
Alternatively to apply for a free call-back click here
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