IVA's - Good or Bad

I recently read something about IVA's and was just after some advice on what people think about them.

1.What financial state do you need to be in to enter an IVA.

2.Is this gonna cause me problems if a few years down the line I want to get a mortgage?

3. How does it affect your credit record?


  • Debt_Free_Chick
    Debt_Free_Chick Posts: 13,276
    Combo Breaker First Post
    With an IVA, you either need a lump sum, or a property that you own, or be able to make significant monthly payments.

    An IVA is "an arrangement with your creditors" so it will get noted on your credit file and will stay there for 6 years.

    Useful information here http://www.nationaldebtline.co.uk/england_factsheets/factsheet_26.php3
    Warning ..... I'm a peri-menopausal axe-wielding maniac ;)
  • jen_jen_2
    jen_jen_2 Posts: 1,032 Forumite
    each one should be based on individual circs but in general owe more than £15 k and more than one debt.

    dont pay for one up front, you want one that the fees are paid for throughout the term of the iva. Speak to a regognised provider, Grant Thornton have been doing it for years and have a good rep. I also know they do not charge to do the preperation only if the iva is accepted by creditors. check out a iva companys record, how many do they have that are completed? etc

    remember if you fail an iva you could be made bankrupt

    credit record will be as affected as any debt ie default on your credit record for 6 years.

    Its hard to give you any advice with so little info, so get some advice and see how it will affect you personally all ivas should be made to take into account individual circs. and so you need professinal advice, dont pay for any advice at the investigation stage a good iva will do it for free and also advise you about other options.

    hope this helps a bit
    Ready to Go Go!
  • mattp_3
    mattp_3 Posts: 270 Forumite
    If you only have a small disposable income (after reasonable living expenses) and it would take you more than 7/8 years to clear your debts through a DMP (Debt Management Plan) then an IVA could be a good option as you would only need to pay what you can afford for 5 years.

    You can speak to this company who do not charge upfront fees, I know several people who have entered into IVA's with them and the CAB's often refer their cases to them:

    https://www.shawsinsolvency.co.uk 0800 716 239

    Hope this helps.
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