Disadvantages of a Debt Management Plan

  • Creditors are under no legal obligation to accept your informal debt management offer, whereas with an IVA if over 75% of the value agrees then the others are bound by law.
  • It is not a legal agreement, meaning that your creditors can potentially change their mind at any time.
  • Although your repayments will be lower and more affordable to you, it will take you a longer period to pay the final amount back.
  • Your credit rating will be affected as you will be breaking your initial terms and conditions with your creditors.

For more information and advice, please feel free to contact us and know that you can discuss your finances with experts in this field.



ˆ Top Of Page ˆ

Entering into an IVA may adversely affect your credit rating for up to six years from the date of approval.

Your property will be protected within an IVA but you may be required to release all or part of any equity during the period of the arrangement.

Failure to complete the term of an IVA can result in bankruptcy.

(In Scotland, a PTD is the equivalent to an IVA.)
Name
Home Telephone
Mobile Telephone
Email address
Level Of Debt
Number Of Creditors
Monthly Income
Homeowner?

House Value
Mortgage Owed

Please accept our
Data Protection Policy
to submit enquiry.