Debt Management vs. IVA

Although a Debt Management Plan and IVAs are repayment schemes to your creditors, there are many differences between the two debt solutions. The table below shows a brief example of the differences. 

 

Debt Management

IVA


Is my name kept private?

Yes. There is no public record.


Yes, an IVA will not be advertised.

Will my debt arrangement remain private?

Yes, only creditors are notified.

Yes, only creditors are notified.

Can I still run a business?

Yes.

 

Yes,  you can still be a company director or practice professional roles involving finance

Will I have control over my assets?

Yes.

Yes, some assets can be excluded from your proposal.

Can I keep my bank account?

Yes, although you might have to change your bank provider.

Yes, although some extra facilities may be removed.

Can I avoid going to court?

Yes.

Yes, as long as you are free to answer questions during your creditors meeting.

Am I legally protected from my creditors?

No.

Yes, court proceedings cannot be brought against you.

Will my debts be cleared within an agreed period?

No.

Yes.

Will interest be frozen?  

Possibly, although this cannot be guaranteed.

Yes.

Are my creditors likely to accept less than I owe?

No.

Yes.

Will my debts be reduced?

No

Yes.

Will this definitely stop my debts from increasing?

No

Yes.

Is the service Free?

No.

Yes.

Am I legally protected from my creditors?

No.

Yes.

Will my creditors stop pursuing me for repayment?           

Possibly.

Yes.

Will I be seen to be trying to do the right thing by my creditors?

Possibly.

Yes.

Do I regain control of my financial situation?         

Yes.

Yes.

Will the procedure be administered by an Insolvency Practitioner?

No.

Yes.


If you have become insolvent, your best option out of debt can only be determined by your individual circumstances. You should seek expert advice, call our professional All Clear Finance advisors on 0808 131 0038.


ˆ Top Of Page ˆ

Entering into an IVA may adversely affect your credit rating for up to six years from the date of approval.

Your property will be protected within an IVA but you may be required to release all or part of any equity during the period of the arrangement.

Failure to complete the term of an IVA can result in bankruptcy.

(In Scotland, a PTD is the equivalent to an IVA.)
Name
Home Telephone
Mobile Telephone
Email address
Level Of Debt
Number Of Creditors
Monthly Income
Homeowner?

House Value
Mortgage Owed

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