Who Can Use An Individual
Voluntary Arrangement (IVA)?
Anyone can consider an IVA to solve their debt problem. IVAs have been put in place for anyone, from your blue collar professional to Armed Forces personnel or members of the Police. Your ability to undertake an IVA is not defined by your job or profession.
Who Is Eligible For An IVA?
It will depend on your personal circumstances. Normally your personal debts must be above £15,000 and you should have
3 or more different creditors. You must also be able to offer a reasonable monthly payment to your creditors. This will vary depending on the debt. However, as a
guide, you will usually need to be able to afford at least £200/mth.
Which Debts Can Be Included?
Normally any unsecured debts can be included within an IVA. These include but are not limited to:
- Store cards
- Catalogues
- Credit cards
- Personal loans
- Student loans
- Overdrafts
- Outstanding balances after home or vehicle repossession
- Business loans for which you are personally liable
NB: Personal debts to the Inland Revenue and VAT can also be included but may be treated preferentially within the proposal.
Which Debts Can’t Be Included?
Some debts cannot be included within an IVA. These will normally involve secured debts, such as a vehicle HP or Mortgage arrears. Other debts such as Rent and Council Tax arrears and fines (such as parking offences) will normally have to be paid and provision for the repayment of these debts will be made separately.
Contacting an Insolvency Practitioner
(IP)
You cannot propose an IVA to your creditors by yourself. By law, you will need the help of an Insolvency Practitioner or IP (see Glossary). There are a number of reputable Insolvency Practitioners. Please click on
our recommended list of IVA
companies for more information.
Will I Have To Pay For This Service?
Insolvency Practitioners do not work for free. However, this does not mean that you will be facing a bill if you want to undertake an IVA. Many Insolvency Practitioners will take their fees from the money that you agree you can afford to pay each month. You will therefore not have to pay more than your agreed monthly payment.
Different Insolvency Practitioners have different ways of charging fees so make sure you ask how this will be done and shop around if the need be. Some Debt Management companies and IPs will offer a free home consultation. Take advantage of this offer if you can.
IVA Information Center
-What is an IVA?
-Starting an IVA
-The IVA process
-IVA monthly payment
-IVA Pros and Cons
-IVA FAQ
-Expert Advice
-Health Issues
-The Panic Zone
-IVA Glossary
-Insolvency Act 1986
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