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IVA Pros & Cons

IVA Pros
  • IVAs can be used to write off significant amounts of debt

  • The monthly payments are affordable

  • You are protected from legal action

  • Your creditors can’t contact you directly

IVA Cons
  • An IVA will impact your credit score

  • Creditors are under no obligation to agree to an IVA request

  • Only unsecured debts are included. Any other debts will remain outstanding

  • IVAs are recorded on a public register

Debt Management Plan Pros & Cons

DMP Pros
  • Reduced monthly repayments

  • Creditors can freeze interest and charges on your debts

  • DMPs aren’t recorded on a public register

  • You should receive less contact from your creditors

DMP Cons
  • You’re still liable for your full debt

  • Creditors can still take legal action

  • There are no guarantees that the creditors will accept offers

  • Your creditors aren’t obligated to cease contact

  • Can affect credit file

Protected Trust Deed Pros and Cons

Only available to Scottish residents.

PTD Pros
  • Potential to write-off some of your debt once your 4-year repayment plan is complete

  • Affordable monthly payments that fit your budget and allow you to stay ahead of your debts

  • Any legal actions taken against you regarding debt recovery will stop, including bailiffs (Sheriff’s Officers)

  • Interest and charges are frozen

  • Assets, such as your home, will be protected

PTD Cons
  • A legally binding contract

  • Creditors can object to your Trust Deed. If multiple creditors object, your Trust Deed may fail to meet its protected status

  • Student loans are not included

  • Your credit rating will be affected

  • You may have to release some of the equity in your property for the benefit of your creditors

Debt Relief Order Pros & Cons

DRO Pros
  • Potential to write off debts

  • 12 months respite from your debt repayments

  • Creditors cannot contact you during the 12 months

  • You don’t need to appear in court

DRO Cons
  • You will need to pay a £90 fee

  • Not available if you own property

  • Your credit rating will be affected

  • Must have less than £2,000 in assets and a car worth no more than £4,000

  • Only available if you owe less than £50,000 (£20,000 in Northern Ireland)

  • Have less than £75 in surplus income per month after paying your household bills and living costs

Bankruptcy Pros and Cons

Bankruptcy Pros
  • Wipes away all unsecured debts, allowing you to start over

  • Stops creditors from taking legal action

  • You will be left with enough money after repayments to live on

Bankruptcy Cons
  • Your possessions, such as your car and house, may be repossessed

  • There is an initial fee to pay

  • Your bankruptcy will be placed on a public record in the Bankruptcy Insolvency Register

  • Your credit rating will be negatively impacted for 6 years

Debt Arrangement Scheme Pros and Cons

Only available to Scottish residents.

DAS Pros
  • A guarantee of legal protection against creditors and interest and charges will be frozen

  • Your possessions and property remain safe, regardless of equity value

  • Creditors who initially reject your proposal can be forced by an administrator to comply if the arrangement is deemed fair

DAS Cons
  • Limited access to future credit

  • Credit score will be affected

  • Will need to make regular payments

debt consolidation plans

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1stopdebtsolutions is a trading style of Lawson Fox Debt Solutions Ltd. 3rd Floor, Falcon Mill, Handel St, Bolton BL1 8BL.

Tel: 01204 804 000
Registered in England & Wales Company Number 07319288.

We provide Insolvency solutions to individuals throughout the UK; specialising in Individual Voluntary Arrangements which comply with the IVA protocol

Joanne Evans is authorised by the Insolvency Practitioners Association to act as a Licensed Insolvency Practitioner.

IP Number 27090

ICO Number: Z3070317
FCA: 660857

Lawson Fox Debt Solutions Ltd does not generate leads for resale



Your debt help application will be processed by one of our expert debt advisors. These in-house advisors will be able to go through all your debt options including IVA (Individual Voluntary Arrangement) opportunities which are available for people living in England, Wales and Northern Ireland. Help can only be offered following an initial fact-finding process. If an individual meets the required criteria for an IVA, advice can then be provided.

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Customers can get free debt counselling, debt adjusting and providing of credit information services from Money Helper – an organisation set up by the Government to offer free and impartial advice to those in debt. For more information from Money Helper click here

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