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Advantages and disadvantages of an IVA
The disadvantages of an Individual Voluntary Arrangement (IVA) :
- Usually only suitable if the debtor has unsecured debts of at least £12,000.
- To gain approval, creditors representing at least 75% of the value of the money owed, as well as a simple majority, must agree to the proposed arrangement.
- You will be required to stick to a budget for the term of the arrangement (usually five years).
- All assets and liabilities must be declared, if you own assets of excessive value, the creditors can ask that they be released for the benefit of the creditors. Any windfalls, inheritance or bonuses must be declared to the Supervisor of the arrangement.
- All IVAs are recorded in a public register and will appear on your credit file. This could affect any future applications for credit.
- In some cases it may be necessary to release some of the equity from your property in the 4th year of the arrangement.
Click here to see some of the advantages of and IVA
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