To help you make the best decision as to whether an Individual Voluntary Agreement (IVA) is the right option for you, we have compiled a list of the IVA's main advantages and disadvantages. Although there are a number of ways IVA can help, and also have numerous drawbacks, some of them can also be imbued with benefits, such as the ability to self-medicate and freedom to move, among others. The following lists of pros and cons of IVAs are designed to draw your attention to the big advantages and disadvantages of IVAs.

IVAs are legally required not to apply for credit facilities and your IVA will remain in your credit card file for five years from the date it is taken up. This will distinguish you from other people in your financial situation, such as your spouse, children or other family members. Your credit rating will also be affected if the IVA is completed within five years of its completion, as it appears in the Individual Insolvency Register.

While you should always seek advice from a licensed insolvency administrator, you can weigh the pros and cons of an IVA and see what it looks like when it is a workable solution for you. Learn the pros and cons of IVA from accredited experts before deciding to use an IVA service on an IVA debt settlement.

Although the cost of bankruptcy is generally higher, it should not be forgotten that the alternative to an IVA is bankruptcy. While bankruptcy can be completely resolved in 3 years, an IVA cannot be tied to repayment of 5-6 years.

IVAs are entered in the Individual Insolvency Register, which reduces the chances of obtaining credit until the release of the credit report. IVAs will not be allowed to receive loans up to PS500 during the term of their IVAs, and it will be difficult to obtain credits once an IVA has deleted its credit file. There are a number of potential positive aspects to concluding an IVA, but there is always a risk of a negative impact on your credit rating and a potential loss of access to credit. By using IVA you only have to pay an agreed percentage of your debt back.

If you have a sufficient income, an IVA may be the best way to pay off your debts and has a good result for your future solvency, but it should be weighed against a debtor with a very low income. If you accept an IVA in a meeting with a creditor, the debtor will enjoy a considerable number of advantages, provided that he/she adheres to the agreed terms throughout the IVA's term. Since something is better than nothing, and the amount that the creditor receives under an IVA is likely to be higher than the amount that he receives in bankruptcy, they will most likely agree.