Debt Management or an IVA?

A Debt Management Plan and an IVA are solutions that are only available to insolvent debtors.

Being Insolvent simply means that you cannot afford to repay your debts each month. That is the full contractual payment and not the minimum payment. Do not fall into the trap of repaying minimum monthly payments and thinking you can afford your debts, because with the interest and charges applied you could be paying for up to 40 years.

Once it is determined that you are insolvent both Debt Management and an IVA become options for you.

If you are considering Debt Management or an IVA, then chances are that you have a number of debts which are spread over a number of different accounts with different creditors.

With both solutions you will still only make one affordable monthly payment which is tailored to your circumstances.

Every case is unique as everyone’s financial circumstances differ. This is why we have IVA and Debt Management experts who can provide you with more information and determine which is the best option for you.

Please call us FREE on 0800 019 5870 or fill in our quick enquiry form and we will call you back.

If you are unsure about your options, try the One Advice One Minute Debt Test, which will show you if you are eligible for an IVA or Debt Management Plan.

For those who are struggling with their personal finances, an Individual Voluntary Arrangement (IVA) could be a better alternative to a Debt Management Plan. An IVA is a legal procedure so a great deal of care and attention needs to be applied before making your decision.

Entering into an IVA may adversely affect your credit rating for up to six years from the date of approval.

Your property will be protected within an IVA but you may be required to release all or part of any equity during the period of the arrangement.

Failure to complete the term of an IVA can result in bankruptcy.

(In Scotland, a PTD is the equivalent to an IVA.)