As with any financial agreement, there can be some drawbacks to an IVA. For detailed information about the disadvantages of an IVA, you should contact our expert AllClear Finance IVA advisors on 0800 048 1762.
Disadvantages of an AllClear Finance IVA:
- Minimum Debt Level
For you to be considered for an IVA, your level of unsecured debt must be no less than £12,000. - Commitment to a Set Payment
You must be able to commit to making your monthly payments, as missing these could result in your creditors taking further action against you. - Commitment to a 5 year agreement
An IVA is an agreement between you and your creditors for 5 years. You must be committed to making your monthly payments for this time frame. Failure to make payment will mean that creditors can start bankruptcy proceedings against you. - Creditors must Agreed to the IVA Proposal
An IVA can only go ahead if it is approved by 75% of your creditors. - Possible Equity Release
You may have to re-mortgage your home so some of the equity can be released to your creditors. - No Borrowing During your IVA
During your IVA, you will not be allowed to borrow any further credit or use any existing credit cards or store cards.
For more information about an IVA or to see if there any alternative debt solutions, please contact our AllClear Finance IVA team on 0800 048 1762.
All Clear Finance is a trading style of Ask Finance Ltd (Registered in England and Wales. Company number 4229724), a wholly owned company of the Harrington Brooks Group Ltd. Ask Finance Ltd is licensed under the 1974 Consumer Credit Act to carry on the business of consumer credit, consumer brokerage, debt adjusting and debt counselling. Consumer Credit License No: 507130. Ask Finance Ltd is authorised and regulated by the Financial Services Authority - FSA No: 300490 - for the provision of mortgage advice and arranging insurance.