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