Pros & Cons

It will be a great experience to use an IVA and manage your money in a much better way. Listed below are a few of the advantages and disadvantages of IVA:


  • Paying creditors according to one’s pocket.
    One thing is for sure that there is no need to pay too much. It is important that one pays according to their affordability. This helps in managing the fact that the creditors do not need to make payments that they cannot afford.
  • No need to get on your nerves.
    There is no need to be upset or take things on your nerves as a fixed duration of at least five years is set. This gives one a lot of time to plan and pay off without much tension.
  • Have some debt written off.
    Of most of the payment is made within the given time frame then there are high chances that the rest of the payment can be written off.
  • Protection of home owners.
    It has been seen that the rules of IVA protect your home. You should know that the home owners are safe and the creditors cannot force you to sell of your home.
  • Protection of income.
    The IVA is a private gazette and it is not a part of the law of the government. It helps in protecting the client from getting bankrupt.


  • Damage of credit ratings.
    However much times you take the details rank you for your credit ratings. This will remain with you for life as your credit ratings will always be checked when loans or transactions would be done.
  • Parting with some assets.
    Some of your assets are named in the IVA which may be needed to be sold for the payment of the loan. You may have to part with some of your assets.
  • Rethinking of retirement.
    Due to the payments and whatever loans you have to pay off you cannot take an early retirement or even retirement on time. You will have to reconsider your retirement plans and manage to keep working so that you can manage your retired life without much effort.
  • Releasing home equity.
    It is very important to become familiar to the ‘equity clause’. It is a good idea to handle out things in such a way that you can release some of your home equity to the IVA.
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Free and Impartial Debt Advice is Also Available From: Money Advice Service an independent website. This website was developed to help people finding debt help. The information published on this website should be considered professional information. The written off amount depends on the circumstances including assets, income and the recent write-off policy of your creditors.

Write-off between 25 and 85 percent are real, but it depends on your repay ability. For an IVA solution, you complete a form including your details of assets, income and most essential expenses. It is possible that after completion of 5 year’s IVA time period, your creditors may write off your remaining amount.