IVA pro's & con's

If you would like to talk to us in person about the pro's and con's of an IVA then please call us on 0800 804 7447 for a free confidential consultation.

You can also fill in our enquiry form and we'll get back to you.

Or read on...

An IVA is not advertised, therefore it is an agreement between only your creditors and you.

Creditors vote to accept or decline your offer/IVA and therefore will only accept if there is a benefit to them in accepting, e.g. higher payback or faster payback.

You can exclude assets, unlike bankruptcy.

Costs are usually lower than under bankruptcy.

If an IVA is income based creditors will usually ask for payments to be made over 5 years rather than the 3 years under bankruptcy.

You have more control over how your assets will be dealt with

You can continue to run a company and act as a company director

Your credit rating can still be affected even if you are in an IVA rather than going through a bankruptcy

You can still hold public office and there are less job/career restrictions - although you still need to check your particular circumstances

While there is no legal restriction on obtaining credit while in an IVA, proposals usually do restrict the level and type of credit you can obtain

Avoidance of bankruptcy at any cost

You may simply wish to avoid what you perceive to be the stigma of bankruptcy and as such may choose to put forward an IVA despite being advised you would be better off going bankrupt simply to ensure creditors get a higher distribution or are paid in full. In these circumstances we will provide you with advice appropriate to your position and would consider acting for you should you wish to put forward an IVA.

Higher dividend under IVA rather than bankruptcy with the same assets – how can that be?

Due to the absence of the DTI advalorum fee under an IVA the same assets could be realised in both bankruptcy and an IVA and yet a higher dividend is available to creditors under the IVA.

FAQ IVA

Q. How long can you not get credit for

A. This is dependant upon the terms of the IVA but it is usual that credit is denied during the period of the IVA unless it is required to continue your business.

Q. Will it be advertised

A. An IVA is not advertised, it is in effect a contract between you and your creditors It is not advertised.

If you’re not sure what information you need or you want to discuss all your options please feel free to give our team a call on 0800 8047447 for a free confidential consultation.

Or complete our enquiry form and we will call you back