Many people think that bankruptcy is the only option for dealing with unaffordable debts, but an IVA is an alternative that could help you repay more of what you owe.
An IVA could also make a big difference if you can't afford to repay your debts within a reasonable period of time.
Your creditors will only accept an IVA if they can see that it is the most viable option for you, and that the IVA itself looks sustainable. You must be able to maintain regular monthly payments and may need to contribute a percentage of any extra income that you receive whilst in the IVA itself.
An IVA could offer a way out if you're struggling to pay your debts. However, if you're a homeowner, you may have to release equity from your home in the final year of your IVA to help repay your debts. If you are unable to remortgage, your IVA could be extended by up to a year so you can make more monthly payments instead.
An IVA will affect your credit rating, so you may find it difficult to obtain a mortgage or other credit - and if you are successful, you might end up paying a higher rate of interest.
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