IVA Disadvantages
We have listed some of the disadvantages of an IVA below. Please review them and remember to find out if you qualify before dismissing the idea as an IVA can often be a great alternative to bankruptcy.
- You must have debts in excess of £12,000
- You must be able to afford to pay back at least £200 per month.
- Creditors that are owed 75% of total debt must agree to the proposal.
- You must stick to a budget for the full term of the contract.
- Once entered into an IVA it will be registered on your credit file. However this may be looked upon favourably by a future lender.
- If you own a property it may be necessary to release some of the equity from your property in the 4th year of the contract.
- Whilst in an IVA you will not be able to take out any unsecured credit.
Click here to see some of the Advantages of an IVA