Speak to one of our specialist advisors 0808 156 7730

IVA advantages

IVA advantages

There are a number of ‘IVA advantages’ that need to be taken into account when comparing this increasingly popular debt solution with its main alternatives – loans, debt management, and bankruptcy.

The main IVA criteria are:

  • You can write off the part of your debt you can’t afford (usually around 50%)
  • Your home is protected
  • It lasts for a fixed period of time (usually 60 months)
  • It’s legally binding which means your creditors can’t change their minds
  • Interest and charges stop as do the letters and calls

You can’t however decide that you want an IVA. It has to be chosen with you and for you by an Insolvency Practitioner that are part of IVA companies.

When advising on whether an IVA is going to be the best solution, there are some really clear criteria that can be used:

  • Would you qualify for and IVA or is another solution better for you?
  • Is an IVA the solution that pays off your debts fastest with the least possible money?
  • Is an IVA the solution that impacts your credit rating the least?
  • Will an IVA impact your professional career?

Before you can know any of the above a detailed assessment of your debts, your income and expenditure to work out how much you could afford to repay your creditors every month for 5 years needs to be worked out. If that amount is over 25% of you total debt, you’re employed or self employed, and owe 3 or more creditors £15,000 or more, there’s a chance that an IVA is a debt solution you may want to use.

To help you discover whether you’re likely to qualify for an IVA and whether it’s the best solution for you use our free IVA advice helpline that is accessed via our charity debt advisors.

Applying for an IVA

To get immediate help now, use our IVA advice service which is accessed via charity advisors. They are experts in assessing whether an IVA is the best solution for you and helping you organise one if that’s what you want.

Summary

What is an IVA

  • Introduced by the Government in 1986 as an alternative to bankruptcy
  • Typically, you need to owe more than £15,000 and have something to offer to your creditors each month
  • Typically you can write-off 50% – 60% of your debt and pay the balance over 5 years (60 months)
  • Interest and charges stop and creditors can’t change their mind
  • Your home is protected but you may be required to release any equity you have
  • Someone enters an IVA in England and Wales every 13 minutes
  • We only recommend organisations that have a track record of getting IVA’s accepted by creditors and don’t charge upfront fees

Comparison Table Of Debt Solutions

Solutions Debts Written Off Legally Binding Interests & Charges Residential Status Fees Notes
IVA Yes – Average 58% Yes Stopped Tenant or Homeowner (Eng/Wales) Yes on average around 20% of the payments you make to creditors Typically you must have debts over £15,000 and be able to offer yourcreditors about 20% of the value of the debt back over 5 years.
Debt Management No No Many Freeze Tenant or Homeowner Yes In a Debt Management Plan, you will be required to repay all of your debt in full.
Consolidation No yes New Rates & Charges Tenant or Homeowner Yes Consolidating your debts generally means you’ll pay more back over a longer period of time.
Bankruptcy yes yes Stopped Tenant or Homeowner (Eng/Wales) Yes – up to £700 depending on your circumstances. You may also be subject to a 3 year Income Payments You need to think carefully about all the affect bankruptcy will have on your home and your employment.
Debt Relief Order yes yes Stopped Tenant Yes – £90 You must have debts under £15,000 and have little in the way of assets

 

Request debt help & advice

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aenean rutrum lacus at magna lacinia efficitur. Sed sodales, diam ac aliquam tristique, urna ligula eleifend lorem.

Our team of specially trained consultants can advise you on the best debt solution based on your current situation. For confidential advice Just fill in the form below and one of our team will call you back




Live Chat

Got a question? Our advisers will point you in the right direction.

  • Monday to Friday, 8am to 8pm
  • Saturday, 9am to 1pm
  • Sunday and Bank Holidays, closed
Launch chat

Call us

Got a question? Our advisers will point you in the right direction.

0808 156 7730
  • Monday to Friday, 8am to 8pm
  • Saturday, 9am to 1pm
  • Sunday and Bank Holidays, closed