What are IVAs and Debt Management Plans, and how can they help me?
IVA and Debt Management plans set out how much you can afford to repay to your creditors on a monthly basis as agreed by both parties. The biggest difference between an IVA and a debt management plan is that an IVA is formal and is usually fixed for 5 years. You are protected from your creditors asking for more money as the deal is set in stone; so if your income improves the monthly payments are not increased. For both solutions the whole process is managed on your behalf (including negotiating how much you can repay) by our partners' experienced team. Benefits of the IVA and Debt Management programmes are:
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Interest could be frozen on your debts
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No more calls from creditors
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One reduced monthly payment covers all your debts
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Your home is not at risk
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More disposable income for yourself
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The knowledge that after a fixed period you could be debt free
What are your responsibilities?
For the IVA to work you must provide the Insolvency Practitioner with all details of your debts and income and update them of any changes to your circumstances throughout the repayment term (usually 60 months). You must make the agreed payment on time each month and not build up any other debt. At the end of the term, assuming you’ve met all payments, all outstanding balances covered by the agreement will be permanently written off and you will be debt free. To find out more, read our guide to debt management.