All the IVA Companies You Should Avoid

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Editorial Note: These blog posts represent the opinion of DoNotPay’s Writers, but each person’s situation and circumstances vary greatly. As a result, you should make sure to do your own independent research. Because everyone is unique, our self-help tools are never guaranteed to help with any specific situation. DoNotPay is not a law firm and is not licensed to practice law. DoNotPay provides a platform for legal information and self-help.

All the IVA Companies You Should Avoid

Being in debt can be overwhelming and intimidating for anyone. Debt can be crushing and for many people across the United Kingdom, debt is a cage they are struggling to escape. , is an option that many people utilize to manage their debt and make progress on their financial goals. IVAs are a tool you may use to establish an agreement with your creditors to repay your debt, possibly with a lower payment, over a certain length of time, usually about five years.

To apply for, and obtain, an IVA you must go through a company that is a provider of the loan. Many of these companies are legitimate and do an excellent job sourcing money and managing the debt. However, there are those that are improperly run, charge exorbitant fees, and have less than stellar records. While the differences between the good companies and the bad ones are vast, it can be hard to know which company is which when you are searching for one. There is no reason for concern though, DoNotPay can help. DoNotPay can help you to identify which IVA companies are good to work with and which companies are best to avoid.

What Exactly Is an IVA Company and What Do They Do?

Being in debt is overwhelming and can leave many people feeling like they are literally drowning. One of the options available to people to help manage and deal with debt is an . An IVA is a legally binding agreement between you and your creditors. The agreement creates a commitment by you, and your creditors, to create and abide by a payment that sets up a payment schedule that is more amicable to your financial situation. Payments will occur over an agreed-upon period of time. Most IVAs are for five years, although some creditors may request an extension if the debt is substantial.

After the time period is complete, any remaining debt that you have with your creditors is written off. If you opt to go with an IVA to manage your debt it is important to know how they work. IVAs typically work in the following manner:

  • After deciding to go with an IVA, you will have to find an insolvency practitioner. Insolvency practitioners do the following as it pertains to your case:
  1. Manager your case from start to finish
  2. Set up your IVA
  3. Negotiate and deal with your creditors, including all communication with them
  4. Finish up your IVA once it is completed
  • Insolvency practitioners may be part of a company or work as an individual.
  • IVAs set up a pathway for you to establish payments that are manageable to your household and allow you to make progress on your financial wellness.
  • Remember to do your due diligence and research the companies you are considering. Many IVAs have different fees and rules so it is important to contrast and compare them before choosing one.

IVAs are an option for many people dealing with crushing debt. They help to establish a pathway of communication between you and your creditors. That being said, it can be a complicated and frustrating procedure to find the right IVA and create a plan that is amicable to your life. This is where DoNotPay can help. DoNotPay can help you to identify the best IVA companies for you to utilize to better manage your debt.

Red Flags For IVA Companies to Avoid

While there are exemplary IVA companies, those that work for the good of their clients and help them to establish a positive payment plan to manage their debt. On the other hand, there are IVA companies that are best avoided and can cause more harm than good to your finances and financial well-being. The good news is there are usually signs that allow you to know if an IVA company is a good one or one best left alone. The following are a few of the things that can illuminate the truth about an IVA company and whether it will be a positive or negative addition to your finances:

Unrealistic ClaimsRead each promise your potential IVA is making. Promises that seem unrealistic or too good to be true, usually are too good to be true. It is realistic to expect that an IVA will reduce the amount of money you owe overall, however, a claim of "eliminating the majority of your debt or reducing your debt by 80%-90%" is an indicator the company is not truthful or reliable.
High Failure RateYou are well within your rights to inquire about the success and failure rate of any IVA you are interested in. The average failure rate for IVA is 15%. If a company has a significantly higher rate than that it may not be a good option for you.
Bad ReviewsThis may seem like a simple way to know if a company is good or bad but it is also a good one. Listening to previous customers can give you a good insight into how the company works and its ability to manage debt productively.

Choosing an IVA company can seem like an overwhelming task. Knowing which company to go with to help you manage your debt and make progress financially is a monumental task with often serious ramifications. Not to worry, however, DoNotPay can help. has a vast amount of experience with IVAs and can help you to find the ideal company to help you get back on track, and move forward with, your financial goals.

How Can DoNotPay Help You?

Debt is a heavy burden for anyone to carry and many people become overwhelmed with its weight of it. There are many options people look to for help, including Individual Voluntary Agreements, or IVAs. One of the challenges that come along with choosing an IVA is choosing the right IVA company, one that will look after your best interest and help better your financial situation. There are, however, companies that are not interested in protecting you, or your financial situation. Knowing the difference between good companies and bad ones can make all the difference in your life and your financial situation. DoNotPay can help you to identify the IVA companies that you need to avoid and those which are good for you.

Follow the simple steps below to have DoNotPay help you locate an IVA company that will help you manage your debt and better your financial situation.

  1. Search "debt collection" on DoNotPay.

  2. Answer a series of questions about the debt collectors, including when you were contacted and how you were contacted, so we can determine if they have violated any debt collection laws.

  3. Decide which course of action you want to take based on our guidance, such as filing a debt verification request, demanding for the collectors to stop contacting you, or reporting them to a professional trade association.

DoNotPay can help you to identify the right IVA company to help you further your dream of financial freedom and manage your debt accordingly.

How Else Can DoNotPay Help?

DoNotPay can help you identify a good IVA company, and can also help you to handle many of the challenges that you face in life. Below are just a few of the things DoNotPay can help you handle:

Let DoNotPay help you to choose an IVA that is beneficial to you and your finances, as well as help you with many of the challenges you face in life with as much as ease and grace as possible.

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