DRO vs IVA

DRO vs IVA

The battle of two of the biggest formal debt solutions available in the UK (with bankruptcy watching cautiously from the side): Debt Relief Order versus Individual Voluntary Arrangement.

In Short

A debt relief order (DRO) is for people with low incomes and few assets, whereas individual voluntary arrangements (IVA) are for those people who can afford to make repayments at an affordable rate and want to protect their assets.

DRO

  • AKA: Debt Relief Order
  • Legally Binding: Yes
  • Duration: One year
  • Fee: £90
  • Assets: Can only have £2,000 total worth
  • Interest/Charges: Frozen
  • Public: Insolvency Register
  • Creditor Contact: Stopped
  • Credit Report: Six years
  • Missed Debts: Cannot be added
  • Partner’s Debts: Cannot be included

IVA

  • AKA: Individual Voluntary Arrangement
  • Legally Binding: Yes
  • Duration: Five years
  • Fee: Varies
  • Assets: Protected
  • Interest/Charges: Frozen
  • Public: Insolvency Register
  • Creditor Contact: Stopped
  • Credit Report: Six years
  • Missed Debts: Can be added
  • Partner’s Debts: Can be included

All of our advice is without charge and there is absolutely no obligation to use any of the solutions we may suggest to you. So what have you got to lose?

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