Most Important IVA Facts- Debt Management

Debt management is no child’s play. One needs to have full knowledge of all the tools in the arsenal before committing to a course of action. To pay off a debt, an IVA is a popular option. It is also a significant financial commitment. Before applying for an IVA, it is very important to know the following facts.

Fact 1

IVA payments last for 5-6 years and they’re based on the debtor’s disposable income

Fact 2

An IVA is only available if you are living in England, Wales.

Fact 3

Your IVA may not be accepted as the creditors you include in your IVA are not obliged to accept your proposal.

Fact 4

The unpaid debt included in the IVA arrangement is only written off after your payments are complete.

Fact 5

Only unsecured debts which are included in an IVA will be discharged after the arrangement is completed.

Fact 6

Secured debt like Mortgage are not included in the IVA arrangement and the payment towards these must be maintained. You must also maintain payments towards your other priority debts such as rent, fines, child support payments and utility bills.

Fact 7

An IVA will negatively affect your credit rating. A record of the Arrangement will remain on your credit file for 6 years from the date the Arrangement starts.

Fact 8

Your details like your name, birth date and address will be included in a public insolvency register which is publicly accessible via the internet. As such anyone could discover that you have started the Arrangement if they search for you on the register. These details will be taken off the register once your IVA is complete.

Fact 9

During your IVA you will be required to live within a restricted living expenses budget.

Fact 10

An IVA is not the only debt solution which might be suitable to resolve your debt problem.

 

Get more info on IVA debts and debt management plans on our blog. It’s never too late to start planning!

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