Sole traders, partners and individuals can all qualify for an  IVA

If you fail to adhere to the terms of the IVA, your assets and home may be at risk if you are not excluded from the proposals

There are no restrictions in relation to personal credit (but in practice this can be difficult to obtain)

If an IVA fails because you do not maintain the agreement, your creditors can take further action and you could be at risk of bankruptcy, which puts your home at risk

With an IVA you are not subject to the same limitations that are caused by bankruptcy e.g. your house being repossessed or not being able to act as a director of a limited company

IVAs generally last for a longer period of time than bankruptcy (that is, 5 years instead of 3). The period of time is longer because it is a bargain with the creditors to avoid bankruptcy

A better return is given to creditors than bankruptcy and the costs are considerably lower in comparison

If there is equity in your house, or you have an endowment policy tied to your house, an IVA may require that you release the equity to pay your creditors. However, this usually only occurs at the end of the agreement and is still a better option than repossession as your home remains in your hands

An IVA is a private agreement – only you, your advisor and creditors will know about your IVA programme and there is no publicity in the papers. With bankruptcy, your situation will be made public

If your total creditor debit is less than £15,000, you will not qualify for an IVA

You can safeguard your property with an IVA and proposals are flexible so that they can suit your personal circumstances

No more borrowing allowed during the IVA period

An IVA allows you to open a regular bank account, with no overdraft facility so you are in direct control of your finances

If your total creditor debit is less than £15,000, you will not qualify for an IVA

Agreed monthly payments will remain fixed unless your income dramatically changes

No more borrowing allowed during the IVA period

The IVA is legally binding, which means that no further interest or charges will be added to the debt outstanding. An IVA also protects you against any court action creditors may attempt to take against you

Up to 75% of your debt may be written off once the IVA has run its term. This is because you only pay back a percentage of your debts