What is an IVA?

To be debt-free within 5 years, it pays to IVA

Beware. There is a lot of inaccurate online information about Individual Voluntary Arrangements. But with Milton & Stirling Ltd, you can relax – we’ll be 100% transparent with you from start to finish. Struggling with how you’ll pay your bills is stressful enough, without having to deal to sift through false information. We’ll keep this clear and concise, with the pros and cons of an IVA. If in doubt, simply give us a shout.

The pros of an IVA

  • Once your IVA is agreed by all creditors it is officially a legally binding agreement.
  • You’ll come to an agreement with you creditors about what you can afford to pay each month, meaning you’ve a single monthly payment – and it may even be a one-off payment.
  • Not only will you be debt free within 60 days, but an IVA can take as little as 4 weeks to set up.
  • No upfront fees with Milton & Stirling Ltd allows you to save money and you’ll enjoy a faster set-up time.
  • Your monthly payment will always be within your monthly budget.
  • Flexibility. An IVA is a fixed agreement – but if things change out-with your control you can come to a new agreement with Milton & Stirling Ltd and your creditors.
  • Sticking to the terms of an agreement with your creditors means they can never take legal action against you – you’re protected from court proceedings.
  • An IVA is a private agreement between yourself and your creditors meaning there’ll never be publicity in the newspapers or on social media – unlike bankruptcy.
  • Speaking of bankruptcy – an IVA is acceptable in some jobs, whereas with bankruptcy is not.
  • An IVA could safeguard your property.
  • You WON’T be blacklisted forever. Simply complete the arrangement you have in place with your creditors and can borrow money again. With Milton & Stirling Ltd you can count on your credit rating to improve in time.

The cons of an IVA

  • An IVA WILL affect your credit rating, and usually, for up to a year after the 60-day completion.
  • Your monthly payments need to be at least £80 per month – and you will only qualify if your total unsecured debt is more than £6,000.
  • If you don’t stay on top of your monthly repayments – you could be bankrupted.
  • Your job or career prospects could be at risk as an IVA is a type of insolvency.
  • You may have to remortgage your house – if you’re successful at re-mortgaging you may still have higher interest rates to pay.
  • If your IVA is denied, creditors may backdate interest on your debts.
  • Really high value assets may have to be downgraded (such as a second home or a luxury car).
  • As an IVA is a form of insolvency it is listed on the Insolvency Service website – which can be accessed by anyone.
  • Not all debts can be included in an IVA, such as fines imposed by the court.

An IVA may or may not be your financial solution. But we’ll help you be the judge of that. To start with, let us calculate your monthly repayment in an IVA, contact Find a Debt Expert today on 0161 694 2650 or use our Debt Calculator.

Find a Debt Expert is a trading style of Milton & Stirling Ltd, Company Number SC587851 – Solutions Scotland, 78a Stanley Street, Glasgow, G41 1JH. DPA number ZA431921

Milton & Stirling Ltd are an Appointed Representative of MichaelAlan Ltd who are authorised & regulated by the Financial Conduct Authority, FRN 690939.

As part of our free service, we’ll review your financial situation, explain the available options and recommend a debt solution which is suitable for you. The risks of all suitable solutions will be explained clearly and if you decide to go ahead with a debt solution we will refer you to one of our trusted providers who specialise in the management of that debt solution. We’ll be paid for introducing you or for the preparatory work we do, depending on your debt solution fees may be payable if ongoing services are provided. Read about fees and key information in our terms & conditions. To find out more about managing your money and getting free debt advice, visit Money Advice Service , an independent service set up to help people manage their money.