Can I apply for an Individual Voluntary Arrangement / IVA?
Everyone can consider using an IVA to solve their debts. It does not matter what profession or job you do. It depends on your individual financial circumstances.
How much debt is needed before an IVA becomes an option?
Your personal debt must be above £15,000 and you will have 3 or more creditors. You need to have a certain level of disposable income in order to pay off an affordable monthly payment to creditors. You can use our Disposable Income Calculator to give you a good idea what your monthly disposable income is. The monthly payment varies dependent upon the amount of debt owed. Generally, you will need to be able to afford at least £200 per month.
What type of debt can be included in an IVA?
It is typical to include any unsecured debts within an IVA. This includes:
- Personal loans
- Credit cards
- Store cards
- Catalogues
- Student loans (if taken out before 1 September 2004)
- Bank Overdrafts
- Outstanding balances after home or vehicle repossession
- Business loans for which you have become personally liable
- Other forms of debt may also be included
Is there any debt that cannot be included in an IVA?
Some forms of debt can’t be included within an IVA. This typically includes secured debts, such as a vehicle Hire Purchase or Mortgage arrears. Rent and Council Tax plus any fines (such as parking offences) generally have to be paid. Student loans taken out after 1 September 2004 cannot be included in either an IVA or bankruptcy. Child maintenance payments must also continue particularly where they have been assessed by the Child Support Agency.
How do I apply for an IVA?
If you are considering an IVA you need to use an Insolvency Practitioner. At debtsolve we have a team of dedicated Insolvency Specialists who can help give you the advice you need about whether an IVA would be the right option for you. Fill out the contact form on the right and someone will get back to you, alternatively call 0161 763 2670.
