IVA Pros and Cons

When you’re dealing with financial difficulties, it’s essential to explore all the options available to you. One solution that might help you manage your debt effectively is an Individual Voluntary Arrangement (IVA).

Choosing an IVA is a big step, so it’s important to think about how it could impact you personally. While an IVA can affect your credit score for the duration of the agreement, it also offers strong legal protection, which can be a lifeline for many.

At the end of the day, it’s about putting yourself first and choosing the path that makes the most sense for you. Let’s explore whether an IVA could be the right solution for your financial journey by looking at IVA Pros And Cons

Pros of an IVA

Combines all your debts into one simple monthly payment.
Stops creditors from chasing you, taking legal action, or sending bailiffs.
Interest and additional charges on your debts are frozen
Allows you to keep important assets like your home or car in most cases.
Provides peace of mind, knowing you’re protected and can focus on moving forward without constant stress.
A clear timeline to becoming debt-free, so you know when it will end
There’s an opportunity to have some of your remaining debt written off once the IVA is finished.
Payments are affordable and include all costs involved, so there are no surprises.
A portion of your debt could be written off once the IVA is complete
Once completed, it’s removed from your credit file, giving you a fresh start

Cons of an IVA

Your credit rating will be impacted, and the IVA stays on your credit report for six years.
An IVA is listed on the public Insolvency Register, which is accessible to lenders and employers.
It can be challenging to get further credit while on an IVA.
Only unsecured debts are included, so secured debts (like mortgages) aren’t covered.
You may need to pay unexpected windfalls, like bonuses or inheritance, into the IVA.
Failing to keep up with payments can lead to the IVA being cancelled, which might result in further financial challenges or bankruptcy.
Not everyone is eligible for an IVA, as it requires meeting certain criteria, like having a stable income and sufficient debt levels.
Some job sectors may restrict employees from entering into an IVA due to professional rules.

We have supported 11,300+ individuals on their journey towards financial well-being.

Hear From Darren

The Advice Centre Group Has Given Me Hope.

I have been really helped by the Advice Centre Group. The person who helped me a great deal was called Long, and he really did guide me every step of the way. My debts were crippling and the IVA has really given me hope that I can start afresh and at the same time responsibly pay my creditors what I can.
Thankyou

Name changed for privacy**

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Learn more about managing your debt:

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Concerned about your credit rating after entering an IVA? This guide explains what to expect and how to take control of your financial future.

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Debt Relief Order

A Debt Relief Order is a formal debt solution for individuals with low income, minimal assets, and relatively low debt levels.

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Debt Management Plan – (DMP)

A Debt Management Plan is an informal arrangement between you and your creditors to repay your debts at a rate you can afford.

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Advice Centre Group Ltd registered in England and Wales (14322979). Registered office: Second Floor A, Cheadle Place, Cheadle, Cheshire, England, SK8 2JX.

Adam Southard is authorised as a Licensed Insolvency Practitioner in the United Kingdom by the Insolvency Practitioners Association, We only provide advice after completing or receiving an initial fact find where the individual(s) concerned meet the criteria for one of our insolvency solutions, therefore, all advice regarding Individual Voluntary Arrangements (IVA) is given in reasonable contemplation of an insolvency appointment.

Adam Southard is licensed to act as an Insolvency Practitioner in the UK by the Insolvency Practitioners Association. Office Holder No. 11930

Insolvency Practitioner Directory- Insolvency Practitioner Details (bis.gov.uk)

What you need to know about Individual Voluntary Arrangements
(Insolvency Service)

We provide solutions to individuals throughout the UK, We Will help recommend solutions available to your circumstances in which you can then make an informed decision about which solution you qualify for is best for you and your circumstances.