What are the disadvantages of an IVA?

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The disadvantages of an IVA are:

  1. If the IVA fails, you may be forced into bankruptcy.
  2. Your repayments may be higher and go on for longer than if you became bankrupt.
  3. An IVA may not cover all your creditors i.e. your mortgage lender.
  4. If you own your home or own anything of value, creditors may force you to sell these before they will agree to your IVA.
  5. Be aware of costs as some Insolvency Practitioners may ask for a fee up front. Seek advice if you find yourself in this situation.
  6. Creditors may not agree to your IVA.