IVA vs Administration Orders
Choosing the right procedure for you...
This section of the site will compare IVA vs administration orders.
The debt support team at Money Advice Direct will discuss the debt consolidation procedure, the IVA, bankruptcy and administration orders to see which method is best suited to your case.
For detailed information on administration orders please see our factsheet and for detailed information on the IVA procedure please see our IVA factsheet.
Please note that when looking at an IVA vs administration orders people must note that they are separate legal procedures. An IVA has to be carried out by a Licensed Insolvency Practitioner, whereas administration orders are granted by the courts. An IVA is specifically for insolvent people with debts over £15000, to at least 3 separate creditors whereas administration orders are for people who owe less than £5000 and who have received a county court judgement.
Comparison of an IVA vs Administration orders
- To set up an administration order you need to make an application to the court, whereas to set up an IVA you need the approval of the creditors.
- To set up an administration order you need to have a county court judgement, whereas to set up an IVA a CCJ is not necessary. Although if you have a CCJ you can still propose an IVA.
- The amount you pay back in an IVA is based on what you can afford, is worked out by the IP and confirmed by the creditors. Administration orders are based on what the client can afford and are set by the court.
- Administrations orders last for an amount of time set by the court. An IVA last of a fixed amount, usually 5 years.
- If you fail to make payments on administration orders the order will be withdrawn and the creditors will pursue you as normal. In an IVA if you stop making payments you can be made bankrupt.
- There costs/fees for setting up administration orders are up to 10% of your total debt and is taken before payments to your creditors are made. The cost of an IVA are divided into Supervisors and Nominees fees and can be expensive. PLEASE NOTE that to set up an IVA via Money Advice Direct you will not charged any upfront fees by the panel of IPs
Questions on Administration orders
- What is an Administration Order?
- Advantages
- Who can apply?
- How to apply
- What happens after the application?
- How long does it last?
- Problems with applying
- Poll Tax/Council Tax Arrears
- Magistrates Court Fines
- Social Fund loans
- What can I do if I cannot afford the payment?
- What if I don't keep up the payments?
- When the Administration Order is paid off
- What is a Composition Order?
- Composition Orders
Questions on Individual Voluntary Arrangements (IVA)
- How do I start an IVA
- I am thinking about starting an IVA but I am a low paid street cleaner. Will an IVA still work?
- I am OK with some of my debts but struggling with one loan. Can I leave out the ones I am up to date with?
- Important information regarding IVAs
If you wish to discuss the comparison between Individual Voluntary Arrangements (IVA) and administration orders and understand how it can help you please complete the following form or telephone freephone 0800 074 6918.
IVA Guide
- What does it mean if my IVA is not approved?
- What are my options if my IVA is not approved?
- My IVA has been approved, what do I do next?
- My IVA has been approved subject to modification – what does this mean?
- How do I make my IVA contributions?
- My IVA proposal included the provision that I had to sell/realise other assets – what do I need to do?
- I am receiving letters and emails from companies offering me a better solution than an IVA - what are these solutions?
- What do I do if my monthly IVA contribution will be late?
- How do I deal with my creditors once I’m in an IVA?
- How do I deal with additional creditors now that the IVA has been approved?
- What happens if I miss an IVA payment?
- The bank has not transferred my IVA payment - what do I do?
- What happens if I do not inform my IVA supervisor that I can’t make the contribution?
- I'm struggling to make the monthly IVA payment what should I do?
- I've received a 'Notice of Breach' from my IVA supervisor - what does this mean?
- What happens if I’ve missed IVA payments or received a notice of breach and there is no solution?
- Is it possible to finish or settle my IVA early?
- How do I settle my IVA early?
- What is the process involved when offering an early IVA settlement?
- Why would I vary the terms of my IVA?
- What does the IVA variation process involve?
- What happens when the IVA variation process has been approved by creditors?
- What happens when the IVA variation process has been rejected by creditors?
- How does an IVA end?
- Will I receive any correspondence when my IVA has completed?
- If one of my debts has been excluded from the IVA, am I liable to pay the debt after the IVA has completed?
- When does a creditor debt claim have to be received by when completing an IVA?
- What happens if any additional debt claims is received during the IVA closure process?
- How do my creditors get their money in an IVA and what are the IVA dividends?
- Does the money in my IVA account earn interest and if so where does that interest go to?
- Do I get a report or certificate stating the IVA has been completed?
- How does an IVA fail?
- What is the effect of IVA failure or an IVA failing?
- What happens after an IVA fails?
- What are the costs of an IVA?
- Who pays for my IVA?
- What is the IVA process?
- Who takes care of my creditors?
- Will an IVA make me debt free?
- How an IVA benefits my creditors
- Lifestyle changes during an IVA
- Advice on living with an IVA
- Will creditors contact me?
- Will I my IVA fail?
- Completing an IVA
- Getting credit after an IVA
- Can an IVA make me debt free?
- How to boost my credit rating after an IVA?
- IVA vs debt management
- IVA vs bankruptcy
- IVA vs debt consolidation
- IVA vs administration orders
- IVA pros and cons
- IVA definition
- What is an IVA?
- Why choose an IVA?
- Who is suitable for an IVA?
- IVA benefits
- IVA stages
- False IVA adverts
- IVA compared to Bankruptcy
- IVA compared to debt management
- IVA compared to debt consolidation
- IVA compared to administration orders
- How the IVA got so popular and famous
- Things you should know and do before you start an IVA
- Will an IVA make creditor phone calls stop?
IVA's
The IVA Guide
Money Advice Direct has put together an IVA Guide based on the enquiries and questions that we receive at our helpline offices.
In the guide we cover such subjects as IVA Approval, early settlment of your IVA, missed IVA payments, IVA failure, additional debt claims and much more.
[click here for IVA Guide]
What is an IVA?
The IVA is an extremely powerful tool enabling you to clear your debt and return to a clean financial bill of health. Visit Money Advice Direct's Guide to Individual Voluntary Arrangements (IVAs).
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DANGER
Due to the tremendous demand for debt consolidation services the United Kingdom is now overloaded with debt management companies that contain misleading information. [more...]