The Permanence of an IVA in UK

The press is awash with recommendations that people should not pay for debt advice or debt solutions. Interest should stop, included creditors cannot take legal action against you, and a third party stands between you and your creditors. It's not the right option for everyone though, and an informal debt management plan, debt relief order, or bankruptcy might be a better fit for some people.

However, these IVA benefits come with responsibilities. It is a formal legal agreement between the debtor and his/her creditors as well as the IVA provider. Each party gains rights, but each also has responsibilities. 

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The debtor should keep their IVA firm informed of changes in their situation, inform the IVA firm of any windfalls they might receive (some or all which may need to be paid over), as well as make the agreed payments.

Some people may come to find these rules restrictive and problematic, even if there was initially a great sense of relief that the debts were subject to greater control once the IVA was up and running. 

Others may expect an improvement in their financial situation, such as a pay rise or the possibility of receiving a lump-sum in the near future. In this case, they may want to end the individual voluntary arrangement and work directly with creditors.