An IVA will enable you to reduce your debts to one affordable monthly sum (based on your budget) which is usually fixed over a 60 month period. Monthly repayments can be as little as £250 per month, and after you have completed the IVA, whatever debt is remaining will be cleared, which could be up to 75%, leaving you debt free. Other benefits of an IVA include:
Freeze all creditor interest that you pay
IVA will cut the amount that you owe which could be up to 75%
Prevent creditors taking any legal action against you
No Restrictions to obtaining personal credit
It is a private agreement, It is not publically advertised unlike bankruptcy
Professional status not affected, you can continue to trade (i.e. company director, solicitor)
One affordable monthly repayment
Debt Free within 5 years
An IVA will allow you to keep your House and Car
Avoid Bankruptcy
Your IVA will be dealt with by a licensed insolvency practitioner
Disadvantages of IVA:
An IVA will have a negative effect on your credit rating making it difficult to obtain credit
Failure of an IVA may result in bankruptcy proceeding
5 year period for an IVA compared to a maximum of 3 years with bankruptcy
You must be able to afford a monthly payment, usually over a minimum of £180 per month
IVAs are usually only suitable for debts over £12,000
You will end up paying more back to your creditors than you would in bankruptcy
All creditors must be included, you cannot make separate arrangements
Clear Insolvency is trading name of Hamilton and Clarke Ltd.
Registered in the UK. Company no. 6465374. Consumer Credit License (UK) 612841
Clear Insolvency, 27 Old Gloucester Street, London, WC1N 3AX
