The perils and praises of an IVA 

Cash

We all need it

Having had money problems, would I suggest an IVA to anybody, to be honest I’m not sure and in this post I will try to put a balance of the pros and cons

Pros

  • It’s a controlled agreement that will get your creditors off your back
  • You quickly see benefits
  • If a percentage of your creditors accept then the IVA us accepted across all your declared debts
  • You can add debts
  • Interest and charges etc are stopped

Cons

  • Payments do NOT stay the same as each annual review assesses your disposable income, you’ll keep a third of any extra but anything else is taken.
  • In our case the IVA provider takes a commission which I have later found out, with a little investigation, isn t necessary.
  • We were told that we would never pay anymore than the agreed sum person is month and for 3 years that was true but in the last 2 our payments have gone up

In writing this (obviously an IVA is a last resort, before bankruptcy at least) I honestly think Bankruptcy would have been a  better choice and to be entirely honest we were railroaded by one of the debtors towards the company who manage our debt.

Sure if you don’t expect your wages to go up or bills to go down it’s a great plan but in hindsight I wouldn’t go there again, at least not without a lot of research.

 

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