• Your IVA is entered into a public register which means that credit reference agencies will be able to see it. This will seriously impair your ability to open a new bank account or get a loan as your credit rating will be impaired.
  • Some firms will require you to pay upfront fees to your Insolvency Practitioner to arrange the IVA, although at Knightsbridge Insolvency, which is part of the Money Advice Group, we don’t charge any upfront fees.
  • If you have equity in your home you will generally be required to release all or part of this in the fourth year of the arrangement as part of the settlement to your creditors.
  • If your IVA fails, or you fail to maintain the payments into an IVA, your creditors can take further action against you and it is likely that you may be made bankrupt.
  • There are also restrictions on what expenditure is usually permitted when you are on an IVA. For example creditors will not usually accept extravagant expenditure or anything that could be seen as an unnecessary luxury such as gym membership. There may be individual reasons for such expenditure such as health problems however these are considered on a case by case basis.

For more information about IVAs, see our IVA Options