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Am I eligible for an IVA?

Do I qualify for an IVA?

To be eligible you must meet this criteria:

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 a successful completion which results in you becoming debt free.

Changes in circumstances may be:

A job change may prove to be a double-edged sword–you could experience an uptick in your salary or find yourself taking home less pay.

During your IVA, you may find yourself unexpectedly in possession of a considerable sum of money gained through various means such as an inheritance or workplace bonus.

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. In this instance, you may not have enough funds available for an IVA payment.

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:

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. 

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.

We've already helped 1,000 people this year

Our team of experts help thousands of families every year across the UK get their finances back on track.

Is an IVA right for you?

We can discuss your eligibility for an IVA

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.

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