IVA Disadvantages
IVA Disadvantages
Although an IVA can be a great way to get rid of debts of more than £15,000 it is important to remember that there are also IVA disadvantages. IVA disadvantages can be enough to put you off the idea of an IVA altogether, although an IVA is not quite as serious as declaring yourself bankrupt. If you have run up more than £15,000 worth of debt and are receiving pressure from your creditors you could easily forget that there are IVA disadvantages, however, it is important to remember the consequences of an IVA. IVA disadvantages include:
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Usually, your personal debts must be more than £15,000 to qualify for an IVA
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Creditors representing more than 75 per cent of your debts must vote in favour of an IVA for it to be legal
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An IVA usually lasts for least five years
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Your home and assets could be at risk because creditors do not have to exclude them from your payments
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Every aspect of your finances will be scrutinised by your Insolvency Practitioner
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An IVA is recorded in a public register and is normally applied to your credit file
Before you apply for an IVA it is worth taking note of the various IVA disadvantages. We can put you in touch with a specialist IVA advisor who will guide you through your options and inform you of all the IVA disadvantages that could hinder your attempts to be debt free. Fill in the enquiry form and an advisor will be in touch.