IVA Pros and Cons

Before you consider an IVA it's worth looking at the pros and cons, some of which we have listed below. You can read in more detail about the advantages and disadvantages of an IVA on the IVA Frequently Asked Questions page.

Advantages of IVA

• A way to avoid bankruptcy proceedings and property repossession.
• Make one affordable fixed monthly payment.
• Legal action by your creditors is stopped as long as you make your IVA monthly payments.
• The interest on your debts is frozen.
• You could become debt free in 5 years.

Disadvantages of IVA

• Your credit rating will be adversely affected throughout your IVA and, usually, for an additional year after completion.
• If there is equity in your property you will usually need to release some to repay debt by remortgaging during the IVA (normally during the final year of the IVA).
• Failure of an IVA can result in creditors petitioning for your bankruptcy.
• Not all debts can be included in an IVA. Debts such as court-imposed penalties/fines cannot be included.
• If you come into any extra money whilst in your IVA, this will be taken into account and you could be expected to pay any windfall (but never more than you owe) into your IVA.
• You may have to downgrade or sell any really high value assets (such as exchanging a luxury car for a more reasonable vehicle).

If you've considered the pros and cons of IVA, then why not take complete our short online form and one of our advisors can determine if you qualify for an IVA:

Is an IVA right for me? »