How Do I Qualify for an IVA?

Individual Voluntary Arrangements are a Government led debt solution which were introduced for those who were struggling to make creditor repayments for unsecured debts over at least £12,000 and did not want to declare themselves bankrupt.

Not everyone will qualify for an IVA, so it is important that you understand whether or not you are eligible. If you are unsure then please feel free to contact IndividualVoluntaryArrangement.co.uk on freephone 0800 048 1766. We will be able to help you with an IVA application or offer you a debt solution which is more suitable for your circumstances.

Do I Qualify for an Individual Voluntary Arrangement?

Although an IVA is a debt solution which allows you to avoid some of the long terms implications of bankruptcy, not everyone will qualify. For your IVA to be accepted, a majority of your creditors must agree to the terms. Once it has been agreed you have to make the set repayments for an average period of 60 months.

After you have made the IVA payments, as scheduled in your agreement, any remaining unpaid debt will be written off.

What is the Qualification Criteria for an IVA?

Below gives you an example of the typical qualification criteria which you would have to fulfil for an IVA. The best way to see if you are eligible to write off unaffordable debt with an IVA is to get in touch with one of our team, here at Individual Voluntary Arrangement.co.uk.

We have a team of dedicated IVA advisors who are fully trained in all aspects of debt help, so if an IVA is not right for you then there may be other debt solutions available, such as a debt management plan. For further information call free on 0800 048 1766.

IVA Qualification Criteria

1: Unsecured debt level of over £12,000
Individual Voluntary Arrangements are only fit for debtors with high levels of debt; if you have unsecured debts of less than £12,000 there is virtually no chance of an IVA proposal being accepted by your creditors.

Work out how much debt you owe to see if you have the right amount of debt which could qualify you for an IVA. Unsecured debt which can be included in the agreement includes personal loans, credit cards, store cards, catalogue debts and overdrafts

2: You have a stable income
An IVA means that you are committed to repaying at least some of the outstanding debt to your creditors and to do so you must have some form of income.

3: You are a UK and Non-Scottish Resident
Individual Voluntary Arrangements are only available in England, Northern Ireland and Wales. Trust Deeds are the equivalent of an IVA in Scotland and offer the debtor similar benefits.

To see if you could qualify for an IVA, take the IVA Debt Test, this will show you a list of your debt solution options and help you to decide if an IVA is the best way to tackle your debts.