Bankrupcy may be a better option than IVA
It is possible that an IVA could right off 75% of your unsecured liabilities, but it is likely that the people would stand to benefit from this kind of reduction are better favoured by bankruptcy anyway.
Those who have a relatively low paid job and no property could almost certainly get away with paying about 25% of their debts plus insolvency practitioner fees – still more than 25% though. Creditors would be happy to get anything from this debt and have probably virtually written it off in the first place.So rely on ISA savings or speak to a debt adviser.
If you have a well paid job, home etc you are highly likely to have to repay most of what you owe. Whilst an IVA does potentially allow you to right off some debt, it is more of means of returning order to your finances as it helps you balance the books. The IVA will end after 5 years and your credit rating will be completely clear after 6 years providing you with a fresh start.
