Debt Management Implications 

As with any financial plan there are often unavoidable implications. For more information please call us free on 0808 131 9110.

Debt Advice - Debt Management Implications:

• Creditors do not have to legally accept your offer.
• It is an informal agreement, meaning that it has no legal standing.
• Your credit rating will be damaged as you are breaking your original terms and agreements with creditors.
• Some debts cannot be covered by the plan, such as utility bills and hire purchases.
• If you have low monthly payments with high levels of debts, then it will take you longer to repay your debts.

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.)