The implications of entering into an IVA

An IVA (Individual Voluntary Arrangement) can help you avoid many of the major implications of bankruptcy, but there are still some important considerations. For full details talk to the Debt Advice Trust, an organisation that does not depend on funding from lenders or banks. We can provide you with expert, honest and impartial advice about IVAs and other debt solutions.

The implications of an IVA are not the same as with bankruptcy

With Bankruptcy, the financial implications can be very far-reaching and long lasting. For instance, with bankruptcy you could lose your home. While this won’t happen with an IVA, it’s important to get advice from someone who will help you decide the best solution for you based on your situation while weighing up all the pros and cons. That’s what the Debt Advice Trust will help you do.

What an IVA involves

You IVA provider takes a close look at your financial situation and, with your agreement, an offer is then made to your creditors where you promise to pay back an affordable amount each month for five years. An IVA is a legally binding agreement between you and your creditors. As long as you keep up your repayments after five years your creditors will write off the rest of the debt you can’t afford to repay.

Implications of IVA FAQs

• Q: How do I know how much I will have to pay through my IVA?

  A: This is finalised after you have discussed your situation with your IVA provider and they have negotiated with your creditors. But the whole point of an IVA is to make your new monthly repayments affordable.

• Q: Are there any alternatives to an IVA?

  A: It depends entirely on your financial circumstances. An IVA is a solution to serious debt, but there are others as well. You should talk to the Debt Advice Trust first so that you get all the advice you need.

More IVA FAQs