Am I eligible for an IVA?
Do I qualify for an IVA?
To be eligible you must meet this criteria:
- Must owe more than £5000 of unsecured debt
- You must have two or more creditors
- Must be a resident of England, Wales or Northern Ireland to be eligible for an IVA
- Must be able to afford at least £80 per month
We understand that different providers may have their own unique set of standards and requirements, so we aim to ensure everyone is fairly evaluated with our criteria.
May not be suitable in all circumstances, fees apply, your credit rating may be affected.
What if my circumstances change?
It is essential you inform your insolvency practitioner of any personal changes during the term of your IVA. Doing so will ensure you’re able to abide by the IVAs terms and will help lead to it’s successful completion.
Changes in circumstances may be:
- Change in income
Should you receive an increase or loss of income, it is important we’re made aware of this.
- Windfalls
During your IVA, you may become entitled to additional assets such as an inheritance or workplace bonus.
- Unforeseen events
Life can present us with unexpected changes, and it is important to be prepared in case your disposable income fluctuates due to a particular event.
Will this affect my IVA?
Experiencing a shift in life circumstance can be unsettling, especially if you are undergoing an IVA. Thankfully there is help available! Notify your Insolvency Practitioner right away so they may negotiate with creditors and make suitable arrangements.
You can’t pay the original agreed amount
If your financial stability takes a hit and you are unable to make regular payments, creditors may be willing to help by lowering the amount until it is more manageable.
Payment Breaks
If finances have been a challenge, there may be an option to take a break from monthly payments: your Insolvency Practitioner can request this of creditors and if approved, repayment will resume only when you’re back on track.
Contributions into your IVA
If your circumstances improve, you could be requested to give more in different forms. You might even have the potential of settling with a lump sum or making larger payments that match your financial abilities- it’s all dependent on working out an agreement together with creditors through your Insolvency Practitioner. If there is no mutual accord, then unfortunately the IVA will not come into fruition.
Can my IVA fail?
Your IVA may fail if you fail to maintain the obligations expected of you during the IVAs term, these will be discussed and agreed with you before you enter the arrangement. Should your IVA fail you could be made bankrupt, although this is unlikely. However, your creditors would be free to pursue the debts again and you may find the outstanding balances have not reduced as much as you have paid in due to the fees associated with the arrangement.
Why an IVA may be in breach:
- You fail to make your monthly repayments
- You borrow more than £500 without the insolvency practitioners consent
- You do not complete your annual review (every 12 months)
- Failure to co-operate with the insolvency practitioner
IVA Costs and Fees Explained
At Advice Debt, we offer complimentary consultations to help you find the best debt solution suited for your needs. An Individual Voluntary Arrangement (IVA) could be an effective route – such agreements come with built-in fees which are incorporated into monthly payments; check out our website’s dedicated section on costs and Fees to learn more!
Let's get started
Advice Debt is here to help you assess and tackle your financial challenges. Our consultation will assess if you meet the qualifying criteria for an IVA. If you do not, we can refer you to one of our trusted third parties who can offer FCA regulated debt advice.
- Safe, secure and confidential.
IVA Pros and Cons
Before committing to an IVA, it is key that all angles are effectively evaluated. Taking the time to weigh pros and cons will ensure you make a well-informed decision with utmost confidence.
Our team of experts help thousands of families every year across the UK get their finances back on track.
Prefer to speak later?
We will offer guidance, support and a solution at a time that suits you.
*To find out more about managing your money and getting free advice, visit Money Helper, an independent service set up to help people manage their money.
