Pros & Cons of an IVA
An IVA is a long terms financial commitment, where you repay a proportion of your debt over 60 months. At the end of this agreement any remaining debt will be automatically written off.
IVA Pros
- 1 monthly payment, tailored to your circumstances.
- All unaffordable debt is written off at the end of the IVA term.
- 60 months repayment.
- All interest and charges will be stopped.
- You will not have to sell your home, although you may have to release some of the equity.
IVA Cons
- To be IVA eligible your unsecured debt levels over £15k.
- It is a complex legal procedure.
- It is a 5 year agreement.
- Failure to make repayment can result in bankruptcy.
- During your IVA, you can not take out any further credit.
Need Credit is a trading style of Ask Finance Ltd (Registered in England and Wales. Company number 4229724), a wholly owned company of the Harrington Brooks Group Ltd. Ask Finance Ltd is licensed under the 1974 Consumer Credit Act to carry on the business of consumer credit, consumer brokerage, debt adjusting and debt counselling. Consumer Credit License No: 507130. Ask Finance Ltd is authorised and regulated by the Financial Services Authority (FSA) - FSA No: 300490 - for the provision of mortgage advice and arranging insurance.