Advantages of an IVA

• Be totally debt free in five years or less
• Learn financial management skills that will benefit you for the rest of your life
• Receive ongoing support from Insolvency Practitioner (IP)
• Avoid bankruptcy and the restrictions it can impose
• You will pay no further interest or charges on your debt
• It is not made public
• It does not effect your professional standing
• You and your IP draw up flexible realistic proposals
• Unlike bankruptcy, you will still be able to act a director of a company or work in the armed forces or other professions
• IVAs provide a better return to creditors than bankruptcy
• If you adhere to terms of the IVA than creditors are not allowed to
  
  

Disadvantages of an IVA

• Any equity in your property may have to be released.
• Failure to meet repayment may result in bankruptcy.
• A minimum monthly repayment is required.
• Terms last longer than bankruptcy.
• You credit rating will be damaged but can be improved in the years following the IVA.
• Level of repayment is higher than bankruptcy.
• Under the terms of the agreement you undertake to contribute as much as possible within your budget.