Disadvantages of an IVA
- An IVA lasts for 5 years.
- An IVA is a complicated legal procedure.
- At least 75% of your creditors, must agree to the IVA proposal,
- Your unsecured debts must be greater than £15,000.
- You must always make your payments on time to your creditors or they could take further action against you.
- You will not be able to take out further credit during your IVA term without the permission of your Insolvency Practitioner.
- You may be asked to re-mortgage your home to release some of your equity, which will be paid back to your creditors.
- An IVA affects your credit rating score for up to 6 years, although if you successfully complete your IVA then this will look more favourably on your record than bankruptcy.
For more information, please contact one of our expert IVA Advisors on 0808 131 9100. Alternatively fill in our Quick Enquiry form so we will call you back.
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.)