Advantages of an IVA

There are numerous advantages to taking out an IVA - both for you and your creditors - helping give peace of mind while you pay back your debts.

Among the reasons in favour of opting for an IVA are:

  • The IVA will last for a fixed term and will not last for more than five years. This means that you will be completely free of debt in five years.
  • You agree the monthly repayments that you can afford. You won't find yourself having to find extra money to meet the payments each month.
  • Creditors have to accept the agreement as binding - they cannot try to change the amount you are repaying back later, meaning you will always know exactly how much is going out each month.
  • Legal action cannot be taken by your creditors and they must stop making any contact with you during the period of the IVA. You will no longer have to worry every time the phone rings.
  • Your home will not be at risk under an IVA - it cannot be repossessed for any of the debts in the IVA as long as you are meeting the repayments.
  • Once your IVA has come to an end, any outstanding balances have to be written off by the creditors. You will be completely debt free after five years.
  • The agreement is entirely private, between you and your creditors. Unlike bankruptcy, which legally has to be made public, your name will not be published in the newspapers and your employer will not be told about it.
  • It is suitable for anyone whose profession would prevent them from bankruptcy. It also does not have any of the restrictions of bankruptcy, meaning you are still able to obtain credit and act as the director of a company.


  • If you need to figure out your IVA (individual voluntary arrangement) repayments then try this useful IVA calculator.