Advantages of an IVA

• No publicity; no contact with your employer
• One affordable monthly payment, usually for five years
• No uncertainty: you know how much you have to pay and for how long
• The unpaid balance of your debts is written off
• Potentially avoids bankruptcy
• Protects you from further action by your creditors
• Your creditors are legally bound by the terms of the agreement

Disadvantages of an IVA

• You will not be able to obtain credit until your IVA is finished
• Requires commitment, as you'll have to make regular payments for the full term
• If you don't stick to the terms of the IVA, it may fail – and this could even lead to bankruptcy
• You may have to:
• Release some equity in your property (if you're a homeowner)
• Contribute more if you receive a bonus or overtime payments
• 'Trade down' to a less expensive vehicle and/or sell valuable assets
• An IVA will involve repaying more of your debt than bankruptcy would
• An IVA will stay on your credit report for 1 year after its successful conclusion, which may make it more difficult for you to obtain credit