Is An IVA Right For You? - IVA Advice
Is An IVA Right For You? - IVA Advice
We could write off up to 85% of your unaffordable debt
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Is An IVA Right For You?
Whether an IVA (Individual Voluntary Arrangement) is right for you or not will largely depend on your personal situation e.g. debt level, number of creditors, affordability etc.
An IVA is a piece of legislation that enables you to agree an affordable monthly payment to your creditors for a period of approximately 6 years. At the end of your IVA term, any remaining debt will be written off.
This is becoming an increasingly popular way of becoming debt free. So if you owe money to more than one creditor and have a minimum of around £5,000 worth of debt that you are struggling to pay, then an IVA could be suitable for you.
Continue reading to get the help and guidance you need.
Do I Qualify for an IVA?
In order to qualify for an IVA, you must meet the following criteria:
Have £5000 or more unsecured debt
Owe money to two or more creditors
Live in England, Wales or Northern Ireland
Have a regular income and be able to meet a monthly payment of at least £85.
What Other Impact Could An IVA Have On My Life?
Before you apply for an IVA, it is important to think about whether you own any property or whether your career could be affected.
When applying for an IVA, your Insolvency Practitioner will consider any equity you may have in your property and take that into account. If you sold your property, could that be enough to cover your debts? The IP will consider if you share the equity with another individual, but if your share is above £5000 you could be asked to re-mortgage your home and to put 85% of that equity into the IVA.
It is important to note, that you will never be expected to sell your property.
It is important to be aware that some professions expect you to declare that you are entering into an IVA agreement to your employer. It can be a good idea to check your employment contract to see if this applies to you.
If you work as an accountant or solicitor, in the police, prison service or fire service, as a bank clerk or a person in a position of financial responsibility, then this could affect your job.
The vast majority of professions are not impacted by an IVA.
Can Creditors Take My Possessions Whilst Arranging an IVA?
When you and your Insolvency Practitioner are arranging your IVA, you can decide which assets to include or exclude. Your IP may ask you to sell any items you choose to exclude, but you can choose whether or not to consent to this.
The following items would be deemed essential and will never be included:
Items related to children e.g. pushchairs etc.
Electrical equipment e.g. TVs, computers etc.
Kitchen equipment e.g. white goods
Medical equipment e.g. wheelchairs
The following assets can affect your IVA and should be declared to your IP:
IVA Help and Guidance
An IVA can be a great, positive way to help with your debt. Allowing you to continue living your life without the stress of being chased by your creditors. Click to find out more about what an IVA is.
Whether an IVA (Individual Voluntary Arrangement) is right for you or not will largely depend on your personal situation e.g. debt level, number of creditors, affordability etc. Click to find out more.
An Individual Voluntary Arrangement (IVA) is a debt solution where you agree with your creditors to pay all or part of your debts. When it is completed, any remaining debts are written off. Take a look at our article to find out more.
Many kinds of debts can be included in an IVA. IVAs are limited to unsecured debts but by solving your unsecured debt problems, you may find paying any secured debt much easier.
Applying for an IVA (Indivudual Voluntary Arranagement) is a fairly straightforward process. Click the button below and a member of our team will contact you and guide you through the process.
As with many things in life, there are benefits and consequences we need to consider. Take a look at our Pros and Cons article to find out whether an IVA is right for you
Setting up an IVA does incur some costs; however, you will not be expected to pay anything up front at the beginning of the arrangement and there will be no surprise costs at the end of the arrangement.