IVA advantages over bankruptcy
Considering an IVA or Bankruptcy?
If you're struggling to meet your financial commitments then an
IVA could be a better option for you than bankruptcy. An IVA may offer you the
opportunity to freeze interest payments,
reduce debts and regain certainty in your
For many, an IVA may be the best road to a debt free future.
Here are some of the features of an IVA, (bankruptcy can often be
avoided if you consider an alternative debt solution):
- You usually only have to pay back part of your debts. A ClearDebt IVA
may be possible for people who owe as little as £5,000
- You make one fixed monthly payment or, in some
cases, a lump sum
- Once your IVA has been agreed all your creditors are
legally bound and cannot change their mind
- As long as you make your IVA monthly payments, all legal action
by your creditors is stopped,
- You pay no more interest on your existing
- Unlike bankruptcy, an IVA is not publicised in the local
- Unlike bankruptcy, professional status is not at risk (i.e.
Accountants, IFAs, etc)
- You won't be forced to sell your home
(although you will usually be asked to make a contribution to your
IVA from any equity you have in your property towards the end of
the IVA. This will not change your monthly payment).
- Your IVA proposal is dealt with by a licensed insolvency
practitioner ensuring that the best and most realistic deal is
put before your creditors.
- It's worth noting that there can be negative consequences to
IVAs and you can read more about these on our Frequently Asked Questions
about an IVA page.
We hope this has highlighted the key differences between IVA and
Bankruptcy. If you're considering bankruptcy or IVA why not speak
to one of our qualified advisors to see which solution could work
Speak to an advisor now