An IVA is not suitable for everyone, but if you do fit the IVA criteria then please get in touch with Debt Free. If you are suitable for an IVA then you can reduce your monthly payments, avoid bankruptcy, write off unaffordable unsecured debt and be debt free in 60 months.
IVA's were introduced as government help for those who are struggling with high levels of debt. If you are accepted for an IVA, it will be a legally binding contract between you and your unsecured creditors and they will not be able to take any further action against you as long as you make the required reduced monthly payment.
The following just provides a basic overview of the criteria which is used to determine your eligibility. The best way to find our if you qualify for an IVA is to get in touch with our Debt Free advisors, call today on 0808 131 0039.
1: Debts over £15,000.
For an IVA to be processed, your unsecured debt should exceed £15,000. If you have less debt than required for an IVA but you still want to reduce your creditor payments, then you might be more suitable for a debt management plan.
2: Set Monthly Payments.
During the IVA process, you must make sure that you can commit to your IVA payments and that they are affordable to you. Your IP will discuss your financial situation and will make sure that your monthly payments are reasonable.
3: You have an income.
An IVA requires the debtor to make set monthly payments to their debt, failure to make these payments means that creditors can start bankruptcy proceedings against you. You must be able to show that you have a stable income through employment, where you can afford the living expenses and can still make a reduced payment to your unsecured creditors through an IVA.
4: You are a resident of England, Wales or Northern Ireland.
An IVA is an instrument of public policy and only available to residents of England, Wales and Northern Ireland. IVA's are not available for Scottish residents but there is a similar process which is known as a Trust Deed. A Trust Deed is similar to an IVA as they are both legally binding agreements where the debtor agrees to make reduced monthly payments for a set period and any remaining debt will be legally written off.