DebtOptions

IVAs are recognised in law
That means that following the formal agreement, creditors must keep to the terms of the IVA by law. This cuts out uncertainty for you and gives you a known timescale for becoming debt free.

They end the letters and calls demanding payments
It is a legally binding agreement for all creditors. They are not allowed to continue to ask you for payments on the phone, or by letter.

They stop your creditors starting court proceedings
Following agreement, your creditors will not be able to start any new legal action against you. You must keep to the IVA agreement to benefit from this protection.

You know clearly how much you have to pay each month and because the IVAs operate for an agreed ‘lifespan’ you know exactly how long you will need to pay it for.

Privacy
Details of IVAs are not published in the local newspapers. Your name could be seen in connection with your IVA on the Insolvency Register on the internet but this is not a resource most people are aware of so your situation is likely to stay completely private.

A solution without impact on your work standing
An IVA does not have implications for your professional status. As well as the general issue of some more privacy, this advantage may be particularly important to qualified professionals that don’t want the stigma sometimes associated with debt problems.

Other Issues to Consider:

Taking all creditors into the IVA
During the negotiations for arranging an IVA, you must provide details of all of your creditors. Whilst this is not necessary in some other options (for example, a Debt Management Plan), it does mean that should your IVA be formally agreed, the benefits apply to all creditors. You can not single out any one particular creditor that you do not want to pay.

Your general credit situation during and after
During the time a formally agreed IVA is operable, it is usually not possible to use store cards and credit cards. This does not mean you are stuck in a ‘cash only’ situation. There are now ‘pre-pay’ cards available that you can pay funds onto before using them to pay for goods or services. You may perhaps be able to negotiate changes to a pre-existing mortgage or obtain a new one during the time the IVA is in operation.

Staying the Course
To complete the IVA successfully, you must stick to its agreed terms. It may be possible to negotiate ‘payment holidays’ and skip payments in some serious circumstances. This would extend the operational ‘lifespan’ of the IVA. On the other hand, should this be necessary, such negotiation could keep you within the IVA agreement to be able to finally complete it and become free of your original debts.

Please remember, the information here is intended as general information and cannot ever replace expert professional advice. For more individual advice take the first step and apply online or call one of advisors on 0800 234 3605.