Advantages of IVA
You can continue to trade if you own your own business whereas if you were to be made bankrupt the creditors could take control of the business. This means earnings from your business can assist in paying creditors. You can also work for the armed forces with an IVA.
Administration costs for an IVA are usually lower than those when applying to become bankrupt, this therefore means more available money to pay creditors. You also get a choice of assets made available to the creditor under an IVA as the arrangement is designed to suit the needs of the creditor.
Disadvantages of IVA
An IVA is usually only suitbale for people who have in excess of £15000 of unsecured debts. You can still be made bankrupt if the IVA fails and an IVA is also registered with the credit reference agencies so it is likely to effect your chances of securing credit in the future.