Assets such as your home, savings and investments are at less risk than with bankruptcy - but they are still at risk.

Your home and assets will still be at risk if creditors decide not to exclude them from the IVA. However, it is normal for creditors to require savings and realisable assets (endowment policies, premium bonds, ISAs) to be converted to cash with the home remaining relatively untouched except for the possible release of some of the equity available at the end of the IVA.

An IVA will impair your credit worthiness and whilst the arrangement is in place, credit will be something that you will have to learn to live without.

Once the IVA has expired, you will still find obtaining new credit facilities difficult for a while. Mortgages, for instance, will be available but many lenders will prefer you to wait for a minimum of twelve months after the date the IVA ends, before considering a new mortgage application from you.

Lenders will usually also require a larger deposit for the property and charge you margin above mainstream interest rates as you will be considered a higher risk.