The Effects

A successful IVA will protect you from ongoing recovery action, freeze interest and charges and providing the plan payments are maintained, a percentage of your debt will be written off. It will avoid Bankruptcy and the difficulties and stigma that accompany it.

At the end of the five year period you have no further obligation to your creditors and your payments will stop. Unlike Bankruptcy you will not normally have to sell your home when opting for an IVA; creditors will expect a contribution from any equity if you own your own home, this is usually achieved by way of a re-mortgage.

The IVA is then finished and you're free from debt.