IVA Pitfalls

At My IVA Adviser our job is to point out any IVA pitfalls.

So here are the IVA pitfalls that we think you should be made aware of…

  • IVA’s will affect your credit rating. The IVA will be marked on your credit file, and it will stay there for 6 years. Any time that you try to obtain credit during that 6 year period, the potential creditor will be able to assess the risk you pose by checking your credit rating, and in most cases will reject your request.
  • IVA’s are formal Arrangements. When the IVA is agreed at the creditors meeting, the IVA becomes legally binding on all parties. This means that you are committed to the terms of the IVA. If you are unable to maintain these terms, the IVA could fail.
  • IVA’s are not flexible. Once the IVA is agreed you will be expected to keep up with your IVA repayments. There will be little that can be done to make small changes to your IVA, should you find it difficult to live within your IVA budget. However, in the event of a serious change in your circumstances you will be able to apply for a modification to your IVA via a variation meeting.
  • IVA’s have a fixed time period. Normally of 5 years, which is a substantial amount of time. You will need to be confident that you will be able to manage your affairs for 5 years, otherwise there could be IVA payment problems to be faced later.

These are the most widely accepted IVA pitfalls, though it is fair to say that each IVA is different, and may contain further IVA pitfalls which are specific to that case.

For a full explanation of how an IVA works read this article. The IVA solution explained.

My IVA Adviser operates a No IVA = No Fee policy.

To find out more, call 0800 088 7505 and discuss the IVA pitfalls with an IVA expert.

Now that the IVA pitfalls have been addressed, why not take a look at the other side of the coin, and read this article about the Advantages of an IVA

If you feel that you need more information download our free to use guide The truth about IVAs

or call our advisers on 0800 088 7503 to discuss the pitfalls of an IVA with them.

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