Debt Management or IVA?

This page aims to offer a brief explanation of the difference between Debt Management and an IVA.

Whether a Debt Management plan or an IVA is more suitable for you is dependent on your personal circumstances. Some people start off with a Debt Management plan but later on go on to an IVA.

An IVA is a Legal agreement but a Debt Management plan is an arrangement which you come to with your creditors, however there is nothing legally binding to say that you or your creditors must stick to this agreement.

 

Requirements for a Debt management Plan or an IVA

£5,000 of unsecured debt with at least 2 creditors is required for debt management.

£15,000 of unsecured debt with at least 3 creditors is required for an IVA.

Minimum payments

£100 per month is the normal minimum for debt management

£200 per month is the normal minimum for an IVA.

Amount paid back

Debts are paid off on a debt management programme but not written off.

If you decide on an IVA some of the debts are written off.

Up to 75% of your debt can be written off, however this depends on how much you owe and what your personal circumstances are. An IVA is very much tailored to each individual, so be careful of false advertising when it comes to an IVA, choose your IVA provider carefully. Of course we only put you in touch with the best & lowest charging providers of Individual Voluntary Arrangements.

A debt management programme lasts for as long as it takes to repay the full amount of the debt.

An IVA normally lasts for 5 Years.