How is an IVA different from a debt management programme?
A Debt Management Plan is an informal agreement between you and your creditors to reduce the unsecured debt payments you are making based on your disposable income (affordability). Interest and charges can often be frozen, but this is not guaranteed. An IVA is a formal (usually 5 year) agreement, backed by government legislation and administered by a licenced Insolvency Practitioner to reduce unsecured debt payments, freeze interest and charges and in most cases, write off any debt that is not paid back after the term of the IVA.