Is It Worth Getting An IVA?

Not everyone can qualify for an individual voluntary arrangement (IVA).

IVAs are generally suitable for people with a sustainable regular source of income.

People with a lump sum to pay towards their debts may also qualify for an IVA.

Not all debts can be included.

Does an IVA ruin your life?

Clearing your debt with an IVA. An individual voluntary arrangement (IVA) can negatively affect your personal and professional life, and make a dent in your credit score.

Is IVA a good idea?

An IVA can be a good choice for some people. But the only debt solution that is guaranteed to write off your debts over 20k is bankrupcy. As with everything, its all down to your personal circumstances, having some debt written off in an IVA is far from a gimme.

Will I lose my car if I have an IVA?

Will I Lose my Car in an IVA? If you enter into an Individual Voluntary Arrangement (IVA), you will generally be allowed to retain your car provided that it is necessary for work or family transport reasons and the car’s value is not excessive. The debtor can make a case for retaining a higher value vehicle.

Can I save while in an IVA?

There is nothing to stop you saving money during an IVA. In fact in many cases it is necessary to put aside some of your agreed living expenses each month. As long as any savings you make come out of your agreed living expenses budget you are allowed to keep them.

Can I go on holiday while on IVA?

Although there’s no official section on an individual voluntary arrangement budget labelled ‘holiday fund’ a break away may still be possible if you’re living on an IVA. And importantly, there are no rules or obligations as part of your IVA which means you’re not able to go on holiday.

Can I pay off my IVA?

Once a monthly payment IVA starts it usually continues for at least 5 years. It is however possible to reduce this period. The Arrangement can be settled early with a lump sum. While the Arrangement is running you can offer to pay your creditors a one off cash payment.

What’s better IVA or DMP?

An IVA is less flexible than a DMP, although you can still vary your payment up to 15% on an IVA. Any larger variations may have to be referred to your creditors for them to vote on the decision. DMPs are more flexible than IVAs, and within reason you can change your payments whenever necessary.

Can I keep my bank account with an IVA?

The only way to protect yourself is to start using a different bank which is not involved in your IVA. If you do not owe your bank money there is no issue. They will not be informed about your IVA and you can continue using your account throughout the Arrangement.

Can Iva take my pension?

If you reach the age of 55 during your IVA you may have the option of taking a lump sum from your pension. You cannot draw money from a pension during an IVA and expect to be able to use the cash for whatever you want. It would then become a windfall and you will be required to pay it all to your IVA Company.

Can I keep my car with IVA?

A car HP agreement is a secured debt. As such it cannot be included in an IVA. Given you need the car you will be allowed to keep the agreement running. There might be an issue if the amount you are paying towards your car each month is more than you are offering to pay into your IVA.

Will IVA affect car insurance?

IVAs and DROs will affect the price you can expect to pay for car insurance for two main reasons. Firstly, insurance providers will consider you a higher risk when you have an IVA or DRO. The other reason is that both DROs and IVAs affect your credit rating.

Can I get car finance with IVA?

If you are currently in an IVA it can make it difficult to take out a new credit agreement, such as car, van or motorbike finance. However, it’s not impossible to get a car loan with an IVA. Moneybarn has expert knowledge in providing finance to customers in an IVA, who have bad credit or a poor credit score.

Can I get mortgage after IVA?

The short answer is yes, it is possible to get a mortgage after an IVA. Specialist lenders can offer mortgages to borrowers who are in an active IVA or have had a past IVA. Although you may be approved a mortgage, you may have to pay higher interest rates as well as having to pay a larger deposit.

What does an IVA stop you doing?

An Individual Voluntary Arrangement (IVA) is a formal and legally-binding agreement between you and your creditors to pay back your debts over a period of time. An IVA must be set up by an insolvency practitioner. This page tells you how an IVA may affect your bank account, savings and pensions.

How does IVA affect my partner?

Finally, the insolvent partner’s IVA may impact on the other partner’s credit worthiness. The IVA will have addressed any joint debts, with creditors receiving a dividend from the IVA. Nevertheless, many people have successfully completed their IVA without negatively affecting their solvent partner.