IVA Pros and Cons - What Are The Benefits of an IVA - What Are The Disadvantages of An IVA?

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IVA Pros and Cons - What Are The Benefits of an IVA - What Are The Disadvantages of An IVA?

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Table of Contents

IVA Pros - What Are The Advantages of an IVA?

When considering whether an IVA is right for you, there are several IVA Pros and Cons to consider:

 

  • There will be no upfront or surprise fees.

  • You unsecured creditor will no longer be able to contact you or take any action against you.

  • Once the IVA is agreed, creditors who voted against it are still bound by it.

  • All charges and interest relating to the debt is frozen.

  • You will make one single payment each month.

  • If your financial situation changes you could be eligible for a payment holiday or for the terms of the IVA to be adjusted.

  • At the end of the IVA, all remaining debt will be written off

  • Your home will not be at risk as a result of the IVA

IVA Cons - What Considerations Do I Need To Make?

When thinking about whether an IVA is right for you, here are some things to consider:

  • Only certain debt can be included in the IVA

  • Creditors may not agree to the IVA

  • Your spending may be restricted during the agreement

  • If you have equity in your property, then you could be forced to re-mortgage, release the equity and have it included in your IVA

  • If you receive funds greater than £500 as a result of inheritance or other such circumstances during the terms of the IVA, then you will need to inform your IP who will introduce them into your arrangement

  • If you fail to make payments, then your IVA could fail

  • If your financial situation changes then your IP could request an amendment to your arrangement with your creditors. If they refuse to comply with this, then your IVA could fail.

  • IVAs are added to the Insolvency Register, which is a public record

  • An IVA will have a negative impact on your credit rating for six years

  • A failed IVA could lead to you being made bankrupt.

IVA Guides and Information

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What Is An IVA?

An IVA can be a great, positive way to help with your debt. Allowing you to continue living your life without the stress of being chased by your creditors. Click to find out more about what an IVA is.

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Is An IVA Right For You?

Whether an IVA (Individual Voluntary Arrangement) is right for you or not will largely depend on your personal situation e.g. debt level, number of creditors, affordability etc. Click to find out more.

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How Does An IVA Work?

An Individual Voluntary Arrangement (IVA) is a debt solution where you agree with your creditors to pay all or part of your debts. When it is completed, any remaining debts are written off. Take a look at our article to find out more.

What Is An IVA

Which Debts Can Be Included In An IVA?

Many kinds of debts can be included in an IVA. IVAs are limited to unsecured debts but by solving your unsecured debt problems, you may find paying any secured debt much easier.

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How Do I Apply For An IVA?

Applying for an IVA (Indivudual Voluntary Arranagement) is a fairly straightforward process. Click the button below and a member of our team will contact you and guide you through the process. 

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What Are The Pros & Cons Of An IVA?

As with many things in life, there are benefits and consequences we need to consider. Take a look at our Pros and Cons article to find out whether an IVA is right for you

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Does An IVA Have Fees?

Setting up an IVA does incur some costs; however, you will not be expected to pay anything up front at the beginning of the arrangement and there will be no surprise costs at the end of the arrangement.

IVA FAQs

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