IVA Disadvantages

If you have equity in your house, an endowment policy linked to your mortgage, or valuable assets you may be required to release them in to pay your creditors. (This is usually done near the end of the arrangement).

However this is preferable to repossession and enables you to safeguard and retain your home.
Disadvantages Normally, an IVA cannot be used if your total debts are under £15,000.

Disadvantages You must be able to afford to make an offer of repayment to your creditors.

Generally you need to be able to afford monthly payments of £200 or more
Disadvantages If you fail to keep up the payments set out in the agreement, your creditors WILL be able to take other action against you, which could result in bankruptcy, and your home could still be at risk if not specifically excluded from your IVA proposals.

Disadvantages In their bargain to allow you to avoid bankruptcy, IVAs are expected to be for a longer period than bankruptcy (ie 5 years).

People who go bankrupt can be discharged from bankruptcy within between 1 and 3 years. So it takes longer to be debt-free.