Problems with an IVA

What can possibly go wrong with an IVA? Actually, a few things can. First of all your creditors may reject your original proposal and you will have to go back to square one. If you think that your creditors aren’t going to accept the IVA in the first place then it’s probably not a good idea to go ahead. You can save yourself time and energy by looking at other potential solutions to the problem.

If your IVA does end up getting approved then there are a variety of reasons that it might fail. You could lose your job and be unable to find a new one – this could mean you’re unable to make the payments each month. Some people end up spending too much money and can’t make the payments – even while still having a job.

If something like this happens and you end up not being able to pay back the IVA then it could mean serious problems for you. You might then face bankruptcy – even if you’ve been paying off your IVA debt consolidation for 2 or 3 years. This is the worst case scenario but one that can be avoided with a little planning and hard work. Being in debt is choice you make and it’s one that can be avoided.

Make sure that the original IVA proposal that you set up with your Insolvency Practitioner is going to work for you over a 5-year period because you’re going to want to stick with it and get that debt paid off.