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Facing Acute Financial Distress? Settle Your Debt with IVA

Make affordable monthly payments through Individual Voluntary Arrangement (IVA) and put your debt stress behind you. IVA is a formal, discreet debt solution which helps you consolidate all your debts and pay for affordable monthly installment to a certified Insolvency Practitioner (IP) who set up the agreement between you and your creditors. IVA empowers you to become debt free in 5 years.

Take control of your debt now by contacting our IVA expert at 0161 519 5000.

Fixed End Date; IVA lasts for 5-6 Years
Single Affordable Monthly Payment
Customized to Your Financial Situation
Write Off Unsecured, Outstanding Debt
Legally Binding Agreement
disadvantages

Downsides of IVA Program

  • An IVA can significantly affect your credit rating for 5 years. It will be difficult for you to get a mortgage or take on new credit agreements.
  • You may have to release home equity to pay back more to the creditors. You may be required to remortgage your home six months before the IVA ends.
  • You must maintain strict expense budget. You may face bankruptcy if you fail to adhere to the IVA terms and goes beyond your agreed expenditures.
  • You need to pay more without reducing the agreement length if your financial condition improves. It means the creditors will get more than they owe you.
  • The IVA program will not be enforced unless all your creditors accept the IVA proposal from your IP, else you will be liable for your debt payments.
  • In case your IVA failed due to non-payment, you will be left in the position where your original debt amount hasn’t reduced. It may lead to bankruptcy.

Perks of IVA

  • With an IVA, you can clear your debt in an agreed number of years. Usually in 5 to 6 years you will get rid of your unsecured creditors and return to your debt-free lifestyle.
  • IVA makes your debt repayments affordable. You only need to pay an agreed, fixed percentage of your debt back every month depending on your specific income and outgoings.
  • As you get control of your debts by availing an IVA program, it will take the bankruptcy weight off your mind, and minimize the likelihood of property repossession.
  • IVA is a legally binding agreement between you and your creditors. Once accepted by your creditors, your availed IVA plan will keep all bailiffs and debt collectors at bay.
  • Contractual interest on your unsecured debt will be frozen when the creditors agreed to your IVA. It will decrease your overall debt amount and you can make easy repayments.
  • Insolvency Practitioner will always be on your side, and cater to your concerns with customized solutions. The IVA advisors will provide you full support throughout the process.
  • Unlike other debt solutions, an IVA is a nationally recognized, formal arrangement that can be set up quickly. It helps you write off your unaffordable debts with minimum hassle.
  • Contrary to other debt management and bankruptcy solutions, an IVA comes with no set up costs. Under the IVA program, you only have to pay low monthly amounts as you agreed.

Debt Management Plan

Looking for a debt settlement to deal with short-term financial problems without involving formal insolvency procedures? DMP is the right debt restructuring solution possible, especially if you owe money to more than one creditor.

Debt Management Plan (DMP) is an informal and non-legally binding agreement for debtors who cannot make full monthly repayments on their accounts. It allows you to identify how much you can pay to your creditors after meeting your priority expenses on food, accommodation and utility bills, etc.

Advantages

  • One affordable monthly debt installment to creditors.
  • More room for flexible debt repayments on regular basis.
  • An adaptable plan to your changing your financial circumstances.
  • The sustainability of DMP will remain unaffected during difficult times.
  • No formal insolvency procedures, including IVA and bankruptcy are required.
  • Creditors may freeze debt interest considering your unique financial situation.

Disadvantages

  • No guarantee that creditors will freeze or reduce debt interest and charges.
  • Creditors can contact you throughout a DMP and pursue further legal actions any time.
  • Creditors can also keep dictating changes throughout the course of this informal DMP.
  • May not work well for higher amount of debt provided you repay low each month.
  • No fixed time period and it may take longer than expected to repay your debts.
  • Your credit rating will be affected despite DMP may reduce your monthly repayments.
  • Entries to your credit file remain for the agreed time period from the date they are entered.

DEBT RELIEF ORDER

DRO (Debt Relief Order) is a debt settlement solution like an IVA or bankruptcy, but for those with little or no-value assets, and are unable to make minimum repayments on their debts. It works as an alternative to bankruptcy or an IVA, especially for non-homeowners.

If your owned assets are worth less than £1,000, excluding your car, or have a disposable monthly income of £50 or less, you can avail an effective debt relief.

Advantages

  • Lasts for a year (12 months), and all your debts will be written off at the end of DRO.
  • Low-cost alternative to formal bankruptcy where creditors cannot pursue you legally.
  • Contractual interest and additional charges will be frozen once the DRO gets in place.
  • Keep your assets if they don’t worth more than £1,000, excluding your vehicle.
  • More affordable compared to other insolvency procedures like IVA and bankruptcy.
  • No further debt collection arrangements and creditor contact after DRO approval.
  • Simple and easy-to-maintain pre-agreed monthly payments.

Disadvantages

  • Strict criteria make it difficult to qualify for a DRO.
  • Need to pay a one-off fee when applying for a DRO.
  • Serious consequences if you fail to adhere to DRO terms.
  • Difficult to open a bank account when you have a DRO.
  • DRO stays on credit record for 6 years and on public record for 15 months.
  • You cannot get new credit as long as you are on a public register as DRO recipient.
  • Must tell the lender about your DRO if you want to get credit over £500.
  • Must make repayments on certain debts (rental arrears, student loans, etc.)

BANKRUPTCY

A formal insolvency, court-driven process for people who cannot find a way out to write off their outstanding balances.
Debtor can file a legal petition for bankruptcy where after evaluation his assets will be used to repay debts to their creditors.

Advantages

  • Majority of your outstanding debt will be settled altogether.
  • Monthly debt amounts will be reduced into one affordable payment (payable within 3 years.)
  • Provides legal protection from creditors as well as further charges and interest.
  • Government supported, court-driven process to clear large amounts of debt which debtor cannot pay.

Disadvantages

  • Adverse impact on the debtor's liability to retain credit in the future.
  • Your bank accounts may be ceased or you may lose access to certain bank accounts for a limited duration.
  • Any sizeable assets you own including your home or car may be used to settle some of your debt amount.
  • Your details will be displayed on the Individual Insolvency Register until 3 months after you are discharged.

Initiate your IVA application to check if you qualify for debt settlement

01

Fill in the debt form

02

Get free expert advice

03

Start managing debts

We Cover the Following Under IVA Plans:

  • Credit cards
  • Bank & building society loans
  • Overdrafts
  • Store cards
  • Personal loans
  • Charge cards
  • Catalogues
  • Council tax arrears
  • Tax debts
  • Electricity and gas debts
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