Do I Qualify for an IVA?

Most IVAs are made up of consumer credit debts such as credit cards, personal loans and store cards. These are provided by a fairly small number of institutions and it’s increasingly true that most of them apply standard criteria to what they will or will not accept in an IVA proposal. The below is a general guide only, but it shows you what sort of IVA proposals are likely to be acceptable to the people you owe money to.

If you need further information the best thing to do is speak to our trained advisors directly by completing the request a call back form.

Do I Have to be a UK Resident?

IVAs are not available in Scotland or outside of the UK. Scotland has a similar mechanism called the Protected Trust Deed. If you are normally a resident of England, Wales or Northern Ireland but are currently living or working abroad, you can apply for an IVA.

What Kind of Debt Qualifies me for an IVA?

In order to qualify for an IVA you must be unable to keep up with agreed payments on a debt such as a credit card or loan.

Is There a Minimum Debt Amount?

£15,000 is the usual minimum debt for an IVA. Below this amount, other debt solutions apply.

What Percentage of my Debt Will I Have to Pay Back?

This is dependent on your individual circumstances but generally a figure of 50% is typical for most IVAs.

How Much Will I Have to Repay Each Month?

You’ll need to show that agreed IVA payments would be affordable for the required period. Your creditors and the Insolvency Practitioner will also try to confirm this. Typically you’ll be in stable employment, with enough money allowed for living expenses, and you’ll have given thought to any likely and significant future events.  The minimum amount is usually around £150 per month.

Will I be Able to Maintain my Lifestyle?

You’ll need to show that you will not be spending excessively and you will be attempting to maximise the payments into the IVA. Some of the more common compromises include cutting down on social expenditure, alcohol and tobacco, and reducing bills such as mobile phone or satellite TV.

Will I Have to Sell my Assets?

You may have to include assets you could reasonably sell or extract money from in the proposal. That might include funds in a saving account, private pension or investments.

What Documentation Will I Need to Provide?

Your proposal for an IVA is based on information about your assets, income and monthly expenditure. You will need to provide suitable evidence such as payslips, recent bills and property valuation (if applicable).