IVA vs DMP - A brief overview

There are two common debt solutions that most people often opt for. These are Debt Management Plans (DMPs) and an Individual Voluntary Arrangement (IVAs). But people should know how to choose between these two options.

By carefully analyzing pros and cons, you can ensure which will be better for your case.

Debt Management Plan

The debt management plan can make your repayment flexible and you could  get rid of your debt. It is basically an informal agreement between the debtor and the creditors.

You have to pay the debt with all the interest charges, following a flexible repayment plan. Creditors can seek a legal action against you and can contact you for revising the repayment plans.

A debt management plan doesn’t give any sort of guarantee that it would be able to secure your assets, as creditors can initiate your bankruptcy seeking sale of your asset to raise money for paying the debt.

Visit this page for more information on DMP.

Individual Voluntary Arrangement

The IVA is a much more safe debt solution, as it is a legal agreement between the debtor and the creditor and the creditor can’t seek a further legal action.

While sending annual statements only, the creditors are allowed to contact you.

In an IVA, a debtor must have a minimum leftover amount of £200 monthly.

All your assets like your house etc. are safe till the time you keep repaying on time. In an IVA, the creditors can’t change their mind once the proposal is approved.

After the completion of your IVA if any debt is left, it is written off.

For more information visit IVA information.


It is a good idea to get expert advice before apply because of legal implications and costs.

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