If you find that you qualify for an IVA then it is often the best debt solution for you, as other debt solutions will increase the duration of your repayments and cannot write off any amount of your debt. An IVA will also ensure that you are protected from your creditors so they will not be able to take legal action against you, as long as you keep to the terms of your IVA.
IVA government legislation was introduced as a more practical alternative to bankruptcy. An IVA is a legally binding agreement between you and your creditors that allows you to only repay what you can afford each month for a typical period of 60 months, after which all the debt that you haven’t repaid is written off by your creditors.
An IVA is a complex legal procedure so it cannot be simply determined by a few brief questions. Call our IVA specialists on 0808 131 9103 to see if you qualify.
1. Unsecured debt over £15,000 - Unsecured debt is not secured against any of your assets and includes personal loans, credit cards, store cards and overdrafts. Even if you don't think that you owe over £15,000 it is important to get an up-to-date statement from all your creditors so you can see how much you owe.
2. A stable income - As part of the IVA agreement you must repay part of your debt to your creditors over a set period of time, usually 60 months. To ensure that you can make the agreed repayments you must have an income.
3. You are insolvent - Being insolvent means that you can no longer afford to repay your debts. Prior to IVAs being introduced, the only solution for insolvency was bankruptcy. But an IVA is a viable alternative as it has less negative implications and is a more private procedure.
4. You are a resident in England, Wales or Northern Ireland - IVAs are only available by law in England, Wales and Northern Ireland. If you are a Scottish Resident then please see our Trust Deeds section, as this is the Scottish equivalent to an IVA.
The above represents only the basic qualification criteria for an IVA, and we would need to speak with you to determine your eligibility. To see if you qualify for an IVA, contact our IVA specialists on freephone 0808 131 9103.