There is no doubt that IVA is the best alternative for avoiding bankruptcy for many people. There are many pros and just a few cons for IVA. Some of them are highlighted below:

Pros

• IVA is available to many different people. IVA is available for private debtors as well as people with partners and sole business people. It can also be used by people who cannot qualify for bankruptcy.
• IVA is legally binding for both parties. This means that you can avoid harassment and collections procedures from creditors during the period in which IVA is in force.
• You can save your property. In bankruptcy, you will most likely lose it.
• You can work to improve your credit score with regular monthly payments that are affordable.

Cons

• IVA is not extended to debtors whose total unsecured loan amount is less than £15,000, and it cannot include mortgages.
• If you fail to follow the agreement or default on payments, your creditors can take legal procedures against you. This may lead to bankruptcy, as well.
• There are restrictions in home equity. You will not be able to transact a home equity loan during the IVA period.