IVA Cons 

An IVA is a legally binding procedure between the debtor and their creditors. If you are considering an IVA, it is important that you are aware of any implications, have a look at the list below or call 0808 131 0039 for more information. 

Debt Free: IVA Implications 

• You must have unsecured debts greater than £15,000.
• Missing payments means that creditors can take legal action against you, such as a bankruptcy.
• It is a five year repayment plan.
• At least 75% of your creditors who vote, must agree to the IVA proposal.
• You may be asked to re-mortgage your home to release a proportion of your equity.

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.)