Who can apply for an IVA?
There are a number of qualifications that must be met before you can apply for an IVA:
You must have unsecured debt in the UK totalling over £14,000. This could be made up of bank loans, credit cards, store cards, catalogues, bank overdrafts, credit agreements or certain types of arrears. With a smaller debt total you should consider a Debt Management Plan
You must be resident in England, Scotland or N.Ireland, or have been resident in the past 3 years. In Scotland with different insolvency laws, you would need to consider a protected trust deed.
You would need to be insolvent which means that your unsecured debt is greater than the value of the equity in any property you might own. You will also need to demonstrate that you are struggling to pay back your debt.
You must be able to afford at least £150/mth to repay on your debts. Without this amount you will need to look at a different debt solution - either a Debt Management Plan or a form of bankruptcy known as a Debt Relief Order.
You need to show you have regular income and can cover your basic living costs - rent or mortgage, household bills, food, clothing, travel etc.
You must co-operate with the Insolvency Practitioner who will propose and manage your IVA. They will need certain documents and evidence of your willingness to pay the agreed IVA payment. You will also need to be prepared for an annual review of your circumstances. If your financial situation changes during the IVA, you will have to be willing to change the IVA payment level.
It is individuals who can apply for an IVA but if you are married or co-habit it may be possible to present an interlocking IVA showing joint debts, income and expenses and making the one monthly payment to cover all the debt.
Subject to the above qualifications - anyone from a lowly paid part time job to a company director can apply for an IVA. It is also possible to apply if you are retired or under certain circumstances if you are simply receiving benefits.
Search for IP/IVA Firm
Last 10 Reviews