IVA Pros And Cons - Advantages & Disadvantages Explained

Understanding IVA pros and cons is in your best interests before opting for an individual voluntary arrangement (IVA). While doing due diligence and gathering information on the various debt relief solutions available to you, the pros and cons of IVA should be of importance to you. This guide covers general IVA pros and cons for you to consider. We also recommend our editor’s pick of platforms to indicate you’d like IVA help. Below, you’ll learn about IVA advantages and disadvantages, discover what it means to be on the IVA register, and be connected with leading platforms offering access to IVA debt help via leading debt solution advisors in the UK. 

What are the Pros and Cons of an IVA in the UK?

Below is a brief display of the IVA pros and cons to expect:

Cons of IVAs 

Interest and charges are frozen 

Not all creditors will agree to an IVA 

When your IVA is complete, all ill-affordable debt is written off 

Your credit score will be affected for 6 years 

You’re given legal protection against creditors 

You’ll pay one affordable monthly payment 

How Long Will My IVA Be On The Register?

An IVA is a legally binding agreement between you and your creditors stipulating how you’ll pay back your outstanding debt. This agreement usually runs for 6 years, and if you’re not out of debt at that stage, unaffordable debt is written off. IVAs provide much-needed breathing room when a budget has become over-indebted.  When an IVA is set up, the over-indebted individuals’ details are added to the IVA register or insolvency register. After the 6-year period is complete and the debt has been paid off, it takes around 3 months for your details to be removed. 

Your current financial situation will determine whether an IVA is a good option for you. The best way to decide if it’s the right option for you is to talk with a qualified and accredited debt solution advisor.

Now, Where Can I Get An IVA? - Top Best IVA Debt Providers UK for 2023 ✅

1. 123 Debt Fix : Best Platform to Request Contact from Debt Solution Advisors Qualified to Provide Advice on the Pros and Cons of IVA
2. Debt Nurse : Leading Platform Known for Connecting Over-Indebted Individuals with Qualified and Accredited Debt Solution Advisors Well-Versed in IVA Pros and Cons UK
3. Help My Debts Pro : Best Place to Complete One Online Form to Request Contact from Experienced Debt IVA Pros and Cons Advisors
4. Viva Debt Help : Ideal Platform for Over-Indebted Britons to Access Debt Solution Advisors Who Can Explain IVA Meaning and Process Effectively

Best IVA Debt Solution Providers in the UK 2023 

123 Debt Fix: Best Platform to Request Contact from Debt Solution Advisors Qualified to Provide Advice on the Pros and Cons of IVA

123 Debt Fix is a platform with a good reputation for connecting individuals with debt solution advisors most qualified to provide decent advice on the pros and cons of IVA and other debt solutions. 

Highlights of Getting IVA Pros and Cons Advice via 123 Debt Fix

• Quick access to advisors
• Write off debts over 5K
• Only one form to complete
• Get advice on multiple debt relief solutions

Pros of IVAs

• Freeze interest and fees
• Stop dealing with creditor calls and emails
• Get out of debt quicker

Cons of IVAs in the UK

• Fees are incurred on IVAs.

Debt Nurse: Leading Platform Known for Connecting Over-Indebted Individuals with Qualified and Accredited Debt Solution Advisors Well-Versed in IVA Pros and Cons UK

If you want to gather advice on IVA pros and cons UK, the best way is through a debt solution advisor. Debt Nurse can connect you with an accredited and qualified debt solution advisor in the UK. You must complete only one quick debt assessment form, and your details will be forwarded to advisors who can assist.

Highlights of Obtaining IVA Pros and Cons UK Advice via Debt Nurse

• Quick processing of requests
• Speak with friendly advisors
• No more calls from creditors
• Write off unaffordable debt

Pros of Getting IVA Pros and Cons Advice via Debt Nurse

• Know your options before deciding
• Understand what debts are covered
• Get guidance through the setup process

Cons of IVAs

• IVAs will affect your credit record for 6 years

Help My Debts Pro: Best Place to Complete One Online Form to Request Contact from Experienced Debt IVA Pros and Cons Advisors

Help My Debts Pro is a platform designed to help over-indebted Britons indicate that they require contact from a qualified and experienced IVA pros and cons advisor. By completing one form, you can learn more about your options from reputable advisors.

Highlights of Getting Access to Debt IVA Pros and Cons Advisors via Help My Debts Pro

• Get professional advice
• No jargon or confusing language
• Transparency at every stage of contact
• Get connected with leading advisors

Pros of IVAs

• Freeze interest and fees
• Get representation so you no longer have to deal with creditors
• Pay your debts off in one affordable monthly instalment

Cons of Individual Voluntary Arrangements

• IVAs incur fees.

Viva Debt Help: Ideal Platform for Over-Indebted Britons to Access Debt Solution Advisors Who Can Explain IVA Meaning and Process Effectively

Viva Debt Help is a trusted platform for individuals in debt to request contact from debt advisors who can assist with understanding IVA meaning and process. Whether you’re in 5K debt or 20K debt, Viva Debt Help can connect you with the right debt solution advisor. 

Highlights of Getting IVA Meaning Assistance Via Debt Solution Advisors via Viva Debt Help

• Understand what you’re getting into
• Make an educated decision
• Consult with friendly, accredited advisors
• No obligation to accept offers/solutions

Pros of Individual Voluntary Arrangements

• Interest and fees are frozen
• Dedicated insolvency practitioner will deal with your creditors
• Reduce your monthly debt payout

Cons of IVAs in the UK

• IVAs cost fees.

Types of IVA Cover to Expect

An IVA, which provides a means for over-indebted individuals to conclude their debt without overwhelming their budget, can come in various forms depending on the debt that you’re in. You can get the IVA for the following:

Overdraft and Personal Loans 

If you’re in an overdraft or have a personal loan you’re struggling to pay off, an IVA can be used to cover debts over 5K.

Catalogue Debts

Catalogue debts are considered non-priority debts in the UK. This is a type of debt from buying items from shopping catalogues and not paying off the balance. When you’re in arrears, it’s considered catalogue debt.

Mortgage Shortfalls

Mortgage shortfall debt is when you sell your home, and the amount you receive is not enough to cover the full amount outstanding to the bank. The amount you still owe the bank or mortgage provider is considered a mortgage shortfall. If you’re struggling to make ends meet, you might need an IVA or another debt solution to help you avoid falling behind on your final payments.

Council Tax Arrears

If you fall behind on your council tax payments and can’t catch up, you may be in council tax arrears/debt. You may receive a court order stating you’ve not settled your balance, and the council can add court costs to the bill. If you’re worried that a liability order will be sent, considering an IVA is in your best interests.

Hire Purchase Debts

Hire purchase is a type of borrowing where you don’t own the item until you have paid it off in full. If you fall behind on your monthly payments, you’ll be in debt and may lose access to the item you’re hiring. You’ll also be liable to back pay the amounts you’ve missed. IVAs can be used to cover bills and fees that have mounted while you couldn’t pay for your HP instalments. 

National Insurance Contributions

If you haven’t been making your national insurance payments, you’ll owe money to the HMRC. There are serious consequences to falling behind with HMRC payments, and many opt for an IVA or similar debt solution to assist with covering the costs.

Individual Voluntary Arrangement: Conclusion

When opting for an individual voluntary arrangement, you’ll only be expected to pay what you can afford each month. Your assets will be protected, and creditors cannot harass you for payments. You’ll pay one set fee each month to your insolvency practitioner, who will ensure that your creditors are paid off according to the agreement. Interest rates and fees are frozen during the process, and you’ll be legally protected. If you’re looking for these benefits, it’s best to connect with a qualified debt solution advisor who can explain the IVA process to you. Making an educated decision is advised for any-and-all financial decisions you must make.

ALSO READ: How Much Does An IVA Leave You To Live On?

IVA Help FAQ’s 

Is an IVA Worth It?

Whether or not an IVA is worth it will come down to your circumstances and preferences. An accredited debt solution advisor can help you to decide by providing you with unbiased advice on all the debt solutions available to you.

What is a Settlement IVA Loan?

This is a loan that’s taken out to cover the balance of an outstanding IVA. For instance, if your IVA is meant to last 6 years but you wish to pay off the full balance at the 3-year mark, you can apply for an IVA settlement loan to finish off the deal and get freedom from the strict rules and limitations that apply.

Can I Trust the IVA Debt Help Available Online?

Whether or not you can trust IVA debt help online depends on the source of the information. In the UK, trustworthy online sources would be the UK Government and Citizens Advice websites. Of course, talking with a qualified debt solution advisor is also a reliable way to gather advice you can trust on rely on.

Where Can I Find Platforms Like Women Dealing with Debt?

If you’re looking for alternatives to the Women Dealing with Debt website, you can try any of the platforms already recommended, including 123 Debt Help, Debt Nurse, Help My Debts Pro, and Viva Debt Help. All these platforms operate in the UK and deal with debt solution advisors that operate in accordance with UK Financial Conduct Authority regulations.

How Quickly Can I Set Up an IVA UK?

Setting up an IVA UK takes some time. While providers can vary in their processing times, most take around 6 weeks to set in place and finalise. The sooner you provide your advisor with all the required evidence and documentation, the quicker everything can be set in place.

Disclaimer: All debt solutions should be very carefully considered. The websites advertised in this paid promotion do not provide debt advice. If you complete the form and provide permission to be referred, they will pass your details onto a regulated debt advice solution provider. All the partners they use are regulated by the Financial Conduct Authority to provide debt counselling. The websites advertised work exclusively with trusted debt solution providers. If you proceed with one of their solution options, they may receive a fee for introducing you to them. The websites advertised are lead generation companies who pass your details onto third parties in order to help you with your debt solution.

Disclaimer: The above is a sponsored post, the views expressed are those of the sponsor/author and do not represent the stand and views of Outlook Editorial.