IVA - Advantages and Disadvantages
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.
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 Michael Fagelman of 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.