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How Does an IVA Affect Your Life?

An IVA has proven to be an extremely effective debt solution for many people in the UK, however it is important to get a clear idea of how it may or may not affect your life. 

Employment 

 

In the vast majority of cases, having an IVA will have zero effect on your job. There is no law to say you must tell your employer. However, there are some professions that are strict about these things and will expect you to inform your employer. These are jobs like Accountants, Company directors etc. If you are unsure then, in confidence, inform your HR department to be on the safe side. 

 

Credit Rating 

 

There is no escaping the fact that an IVA will significantly, negatively affect your credit rating. It is proof that you have been unable to manage money and have needed help. Since some of your debt has been written off, your lenders will have lost some of the money they loaned to you. This makes future lenders nervous about lending to you in the future.  

 

Once the IVA has finished, your credit rating will begin to improve, but it will take time. 

 

Bank Account 

 

If you have a bank account with a bank or building society that you owe money to, then it can be sensible to open a new account with a different bank/building society. This stops the bank you are in debt to from using their ‘right to offset’, this means they have the right to remove money from your account to clear some or all of the defaulted debt. 

 

If you bank account has no links to a bank that you owe money to then you should be fine and will not need to change bank accounts. 

 

Mortgage 

 

Entering into an IVA as opposed to bankruptcy, means that it is extremely unlikely that you would be expected to sell your home. You may, however, be expected to re-mortgage it to realise any equity that it may have. 

 

However, since your credit rating will take such a hit, you will likely find it difficult to get approved for a mortgage for a number of years. 

To find out more, take a look at our IVA information and guidance pages.

IVA Information and Guidance

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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.

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