Am I Eligible for an IVA?

If you are considering an IVA then there are certain criteria you should generally meet in order to be eligible. We can offer free IVA debt advice to see whether an IVA is the correct debt solution for you.

To test your eligibility for an IVA please try our free debt calculator which will give a good indication of which debt solution maybe most appropriate for your circumstances.

We try to explain below the IVA criteria. However, there are sometimes circumstances where an IVA maybe suitable to you when your circumstances may not fit the standard criteria as it maybe both in your interests and that of your creditors to explore the option further.

It is important to speak to a professional to determine whether an IVA is suitable rather than try to fit particular eligibility criteria as you may follow a route that is both unsuitable and damaging to you.

For many people facing debt, an IVA is the ideal way to work past it. However, before you go about applying for an IVA you will need to make sure you qualify for one. This article will tell you the ins and outs of IVA eligibility, as well as how to apply once you have decided it is the route you wish to take. An IVA can provide you with the financial freedom that is your ultimate goal, read on to see if it is the right option for you.

An IVA is generally for those who have personal unsecured debts of more than £12,000. However, to be eligible these debts need to be owed to two or more individual companies. Therefore, if you own more than £12,000 but all to the one creditor then it is unlikely that an IVA will work for you and you will need to pursue other options. However, availing of some quality free debt advice will steer you in the right direction, and X-debt’s professional debt advisors can explain to you in simple terms what your options are.

Furthermore, if you are going to apply for an IVA your income would generally not be derived from welfare or benefits although in some cases this is possible. Usually you need to have income from another source, i.e employment. If this still describes your situation then you need to be able to show that you are in fact unable to afford to pay back your debts based on your current income. In other words, you can’t simply apply for an IVA because you wish to spend your income on something other than repaying your debts. So, the above are the eligibility criteria for an IVA. If these apply to you then it will be an excellent option for paying off the money you owe to your creditors.

An IVA also provides you with a route through which you can avoid going bankrupt. Bankruptcy is a massive step for any individual to take, and in most cases should only be considered as a very last resort. Speaking to a debt advisor will open your eyes to the ways in which you can work your way back to a healthy financial position. IVAs are just one of the arrangements X-debt’s advisors will be happy to discuss with you.

When considering applying for an IVA it is important to speak to an Insolvency Practitioner first as an IVA can only be supervised by a Licensed IP. X-debt’s in house IP or one of our experienced debt advisors will walk you through the steps of the application process. This will also entail agreeing to a monthly payment plan that is feasible, taking into account your earnings and living expenses. In this way you will not be paying out more than you can afford and there is no interest, which will provide you with some well needed peace of mind.

Seek free debt advice today if you are considering applying for an IVA. Contact X-debt now.