IVA Advantages and Disadvantages

IVA - Advantages

• The monthly payment is affordable.
• It avoids bankruptcy.
• You could retain control, for a longer period, of your assets.
• Interest payments are frozen.
• Each case is considered on its merit and does not necessarily require payment of 100p in the £.
• Debts cleared in 5 years, usually.
• It is the debtor's proposal.

IVA - Disdvantages

• No further borrowing is allowed without the permission of the Insolvency Practitioner.
• Impact on credit rating although normally this is better than under bankruptcy.
• Default in IVA could lead to bankruptcy.
• IVA runs for 5 years compared with bankruptcy for 1 year, although in bankruptcy contributions could run for 3 years.

For further information contact MFA Chartered Accountants and Insolvency Practitioners based in Fareham, Hampshire and covering , Portsmouth, Southampton, Havant, Locks Heath, Petersfield, Waterlooville, Horndean, Titchfield, Lee-on-Solent, Emsworth, Park Gate, Warsash  and all surrounding areas.