Is an IVA right for me?
As with any insolvency process there are consequences of entering into an IVA. These include:
- An IVA may have a negative effect on your credit score for up to six years after the IVA is accepted.
- If you are a homeowner you may be required to release equity in the final year of the IVA through remortgaging.
- You may need to make additional payments within an IVA for 12 months to cover any equity value if you are unable to remortgage.
- If you fail to keep up-to-date with payments, during an IVA, the IVA may fail which could lead to bankruptcy.
- Details of your IVA will appear on the Individual Insolvency Register (IIR). The IIR is a publicly accessible register, used predominantly by creditors and credit reference agencies for the purposes of checking the insolvency status of individuals.