Both IVA and Debts Management are agreements with your creditor, where you agree to pay back a set about each month. But there are a number of firm differences between the two:

• Type of Agreement.
  An IVA is a legally binding agreement between the debtor and the creditor. Once an IVA has been approved then the creditor cannot change their mind and pull out of the plan.
  Whereas a debt management plan is an informal agreement and creditors do not have to accept your offer.
• Debt written off?
  Only an IVA can write debt off, and it is not possible to do so with a debts management plan.
• Amount of debt.
  An IVA can only be arranged if you have over £15,000 worth of debt. If you have less than this amount it is likely that you will only get accepted for a debt management plan
• Flexibility.
  A debt management plan is the most flexible of the two, and your payments can be changed in accordance to your personal circumstances. But an IVA is a legally binding process and you must commit to making that payment level each month.

Terms & Conditions Apply. An IVA is for unsecured debts only, and should only be considered in extreme circumstances as failure to adhere to the IVA agreement could result in bankruptcy. Debt write off only applies when the IVA is agreed by your creditors and you have completed the, typically, 60 month term. Once your IVA commences, your monthly contribution is fixed and there are no additional fees on top. Our fees, paid by your creditors, are taken out of your monthly contributions to your IVA and will be notified to you in advance. Some homeowners may be required to remortgage.