Debt management plan vs IVA: Which is the best debt relief option?

When debt becomes a serious problem in your life, you must immediately take steps to get out of it.
As a debt relief option, you can consider a debt management plan (DMP). However, if you have outstanding debts over £15,000 and can make debt payments of £200 a month, an Individual Voluntary Agreement (IVA) may suit you the best. IVA is a legal agreement between you and your creditors that results in reduced payments so that you can pay off your debts within a maximum of 5 years.

How is an IVA better than a debt management plan?

Some of the advantages of an IVA over a debt management plan are:

  • Legally binding: IVA is a legally binding agreement and your creditors have to abide by it once they accept your proposal. A DMP is not a legal agreement and your creditors may not agree to follow the same terms and conditions of the plan after some days.
  • Set up by insolvency practitioners: To set up an IVA, you have to appoint an insolvency practitioner who are licensed and regulated by Insolvency Practitioners Association (IPA). Whereas, a DMP is offered by various debt relief firms which are not legally regulated. You can also be defrauded by scam companies who pose as relief firms.
  • Payments cannot be refused: If your make your payments according to the Individual Voluntary Agreement, your creditors must accept them. However, in case of a DMP, your creditors can change their minds and refuse payments.
  • Legal requirement to freeze interest: Once the IVA is set up, your creditors must freeze the interest and other charges related to your debt accounts. But in case of a DMP, it is not legally required for creditors to do so.
  • Creditors cannot contact you: Under an IVA, the insolvency practitioner communicates with your creditors regarding the proposal and once it gets accepted, none of your creditors can harass you through any sort of correspondence. However, a DMP cannot guarantee you that creditors will stop calling you for debt collection.

The biggest advantage of IVA over a debt management plan is that you can get fixed amount of debts written off with IVA. Whereas, this is not possible under a DMP. The creditors may only agree to reduce the rate of interest on your bills and waive off certain other charges. So, when you need debt help, don't forget to consider an Individual Voluntary Agreement.

IVA Application Form

Fill in the IVA application form in below to start the process for the IVA (Individual Voluntary Arrangement). A senior IVA specialist will contact you at your requested time to discuss your options.

Your Details

Financial Situation

IVA applications form and debt help.

Below are a few of the benefits

When applying with our IVA application form an IVA can help reduce your debt by upto 70%!

You only pay what you can realistically afford if your an IVA application form is approved

The stress of your creditors chasing you will come to an end, they are bound by law to stop chasing for you payments

Get rid of the pressure of debt by applying with our IVA application form.

Why not get the ball rolling by filling in our IVA application form.

What is an IVA?

An IVA (Individual Voluntary Arrangement ) is an agreement between you (the iva application form applicate) and all your creditors. You and your creditors have to come to an arrangement which both parties are happy with. With you being happy with your new affordable monthy payments.

An IVA usually runs for 5 years (depending on your debt levels) and after these 5 years your debt can be settled and upto 70% of your debt can be wiped away.

Because of the way an IVA works it has to be set up by a licensed professional (IP) Insolvency Practioner.

The debt and interest you owe is actually reduced and frozen which is to help you as you get the IVA up and running, which is something we organise for you. So you don’t have to worry about filling in endless form.

FILL IN OUR 1 MINUTE FORM AND WE CAN GET THING ROLLING FOR YOU