Advantages and Disadvantages of an IVA

Advantages include:

  • Be totally debt free after repayment period
  • Learn financial management skills that will benefit you for the rest of your life
  • Receive ongoing support from our IVA specialists
  • Avoid bankruptcy and the restrictions it can impose
  • You will have chance to pay no further interest or charges on your debt
  • It is not made public
  • It does not affect your professional standing
  • You and your Nominee 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

Disadvantages include:

  • 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