IVA Disadvantages
In some cases an IVA is not the right debt solution for you. For free advice on your debts, please call 0808 131 9112.
- An IVA is a complicated legal procedure.
- You must have unsecured debts greater than £15,000.
- At least 75% of your creditors must agree to the IVA proposal.
- If bankruptcy offers creditors a higher return, they will not accept your IVA.
- 5 year agreement.
- You must commit to making monthly payments and failure to do so means that bankruptcy proceedings may be taken against you.
- An IVA will affect your credit rating for up to 6 years.
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.)