IVAs are debt solutions which are only suitable for those with serious debt problems. If you have debts of more than £15,000 and struggle to make the minimum payments to your unsecured creditors, then an IVA could be your route to a debt solution which allows you to avoid bankruptcy.
Not everyone will qualify, and creditors will not always accept your IVA arrangement. An IVA can offer some real benefits as it is a legally binding agreement between the debtor and the creditor. The debtor must make payments to their IVA for an average timeframe of 60 months, after this any unaffordable debt will be written off.
1: Debts over £12,000 – IVA arrangements are only suitable for debtors with large amounts of debt. To be realistic, if you have debts under £12,000 there is virtually no chance of it being accepted by your creditors. But you may benefit from other debt solutions, such as a debt management plan.
2: You have a stable income – Part of qualifying for an IVA arrangement means that you commit to making agreed monthly payments which you can afford. Failure to make these payments could lead to creditors beginning the process of declaring bankruptcy against you; therefore it is essential that you have stable income.
3: You are a UK and Non-Scottish Resident – An IVA is only available in England, Northern Ireland and Wales. Trust Deeds are the equivalent to an IVA in Scotland.
An IVA is a complex legal procedure so it cannot be simply determined by a few brief qualification categories. Call the One Advice IVA team on 0800 048 1752 to see if you qualify for an IVA arrangement.