If you qualify for an IVA, it is usually the best solution for you, as the other potential solutions (Debt Management and Loans) will actually increase your debt amount and the term of your repayments.
Your eligibility for an IVA can only be determined by an expert IVA advisor who will conduct a detailed financial factfind and help you to see if an IVA is right for you.
There are some basic IVA criteria that can be used to see if you are likely to be accepted for an IVA.
1: Do you have unsecured debts of over £12,000?
Your unsecured debts can include debts such as credit cards, store cards, unsecured/personal loans and overdrafts.
You may not think that you have £12,000 of unsecured debt, as you may have only borrowed £10,000. But if you have not been missing your monthly repayments, you will find that unexpected interest and charges could have been added to your debt, which could well have grown to over £12,000 today.
It is important that you obtain up-to-date outstanding balances from your creditors so you can see how much unsecured debt you really owe.
2: Are you insolvent?
Many people think that being insolvent also means that they are bankrupt, but this is not always the case, as being insolvent describes your ability to repay your debt. Prior to IVAs being made available by the government, the only solution for being insolvent was bankruptcy.
Ensure that you get expert advice about your current situation as, once we have determined that you are insolvent, an IVA could become a viable debt solution for you.
3: Do you have a stable income?
An IVA is a legally binding debt repayment plan and to make repayments you must have an income, meaning that you therefore must be employed.
An IVA means that you need to commit to paying a fixed but affordable sum to your unsecured creditors each month. Bonuses would be accounted for separately and this would be explained in detail during the IVA set-up process.
4: Are you resident in England, Wales or Northern Ireland?
IVAs are only available by law in England, Wales & Northern Ireland. If you are a Scottish Resident then please see our Trust Deeds page, the Scottish equivalent to an IVA.
The above represent a the general IVA criteria only and we would need to speak to you personally to determine whether you are eligible for an IVA. Call one of our expert One Advice IVA advisors on 0800 048 1752 or complete the 1 Minute Debt Test to answer the question "Is an IVA right for me?".