how much do you need to be in debt

[tania.l]

how much do you need to be in debt to apply for an iva , is there a maximum amount of unsecured debt , also will i be able to keep my home , thankyou tania

[Skippy]

Hi Tania and welcome to the forum. There is no maximum amount of debt and the general minimum is £15-£20k. You will be able to keep your house but there will most likely be an equity release clause as your creditors will want as much money back as possible.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[Andy2]

I think there is also a rule that you should have debts with more than one lender although this does not seem to be a problem for most people, although be aware of examples of creditors owning more than one brand. For example MBNA own Alliance and Leicester (Credit Cards) and Abbey (Credit Cards) and Virgin (Credit Cards) so whilst you may think you have 4 creditors (in this extreme example) you can actually only have 1. There are several more co-owned banking brands - Halifax/Bank of Scotland, Natwest/RBS, Barclays/Woolwich and these do have implications when it comes to voting. Also a whole raft of store cards are owned by GE Capital (thankfully I have never gone near these). I only (!)have 7 creditors and I thank the lord that I said no to umpteen more, and also declined all the intra-account deals (Oh you have a Visa card, take a Mastercard as well....)

[aguise]

Hi Tania welcome
You also need to be insolvent that means more going out than you have income. If you post more details like income living costs and how much debt .We will all be able to give more advice on possible solutions.

Ang

[iva experts]

Hi Tania and welcome!
As Skippy said there is no maximum amount of debt to qualify you for an IVA but if you own a property, creditors would expect a proportion of any equity to be realised and paid into the IVA.

Hope this information is of use

Regards. IVA Experts

[iva_squirrel]

Hello Tania,

Welcome to the forum.

To qualify for an IVA, your debt needs to be at least £16-20K (there is no upper limit). Also, you need to be able to afford the monthly payments.

One of the key benefits of taking out an IVA over bankruptcy is that the individual's home is safe from repossession.


However, if you have a large amount of equity in your property, the creditor may still expect a certain amount to be remortgaged to help meet the debt. Also, if it rises significantly in value during the IVA period, the lenders may again expect you to release the equity from your home.

Kind regards,

Julia


For more information about IVAs, please visit my website:
www.supersonicsquirrel.net

[Oliver]

INDIVIDUAL VOLUNTARY ARRANGEMENT (IVA)

WHAT IS AN IVA?
An IVA or Individual Voluntary Arrangement is a legally binding agreement with Creditors. It allows someone who is in financial difficulty to make a formal proposal to settle his/her debts within a reasonable and fixed period of time - normally 5 years. The repayment proposal is based on what you can afford to pay. After the agreed payment period, any outstanding debt will be legally written off by your creditors.

An IVA will overcome the disadvantages normally associated with the informal Debt Repayment Plan. Particularly, the IVA allows you to be debt free in 5 years. A single affordable payment is made each month for 60 months and under the law, your creditors must freeze all further interest or charges. Once the final payment is made, Creditors agree to legally write off any outstanding debt. As such, the IVA offers a solution with a specific end date so you know exactly where you stand and when your debts will be over for good!

Advantages of an IVA:
Single affordable monthly payment.
Fixed repayment period (normally no more than 60 mths) with a specific end date giving Light at the End of the Tunne.
Creditors must freeze all further interest and charges.
Once the final payment is made, any outstanding debt is legally written off by the Creditors.
Creditors are legally bound to the agreement. They can not go back on the agreement and demand increased payments.
Once the final payment is made, any outstanding debt is legally written off by the Creditors.
Current and Future CCJ’s overturned.
Protection from court action by creditors.
The IVA is discreet and can be used by professionals, forces personnel and the police without damaging career prospects.

Disadvantages of an IVA
Although the advantages of an IVA are significant, undertaking an IVA is a serious matter. As such, there are some things that you must bear in mind.
The IVA will be recorded on your credit file. This means that you will not be able to take further unsecured borrowing for the period of the IVA.
Once the IVA is completed (normally after 5 years), you can borrow again. However, it may take some time for your credit rating to repair.
If you are a home owner, during the course of the IVA you may have to release available equity from your property to increase the overall settlement offer to your creditors.
Your debts will have to be at least £15,000 and you will usually need a disposable income of c£200 / month.


Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[Adam Davies]

Hi
Just to add to Aguises important comment that first and foremost you must be insolvent,and this includes not having equity in your house that is greater than your unsecured debts.
Regards


Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp