How to qualify for an IVA
An IVA might sound like a good debt help solution, but it might not be the best way to clear your debt. Because it's not suitable for everyone's debt, there is criteria you must meet first.
IVA Eligibility Checklist:
- Your debt is over £15,000.
- Your debt is owed to 3 or more creditors e.g. credit card or store card debts, unsecured loans
- You have calculated a realistic budget you can stick to in order to make your payments, allowing enough to pay for everyday basic needs, bills and general living costs.
- You are in regular employment with a steady income.
If you answered no to any of these criteria then an IVA might not be the right solution for you. The only way to find out is to talk to one of our debt advisors.
It's crucial your budget is realistic, as not having enough to make your IVA payment has harsh penalties and could see you becoming bankrupt.
If you are not in steady employment, this also makes you more risky as an IVA candidate and could lead to a failed IVA. During the 5 years it may take you to complete an IVA, it is understandable that your employment situation may change. If so, there is room for negotiation in an IVA and your creditors may agree for you to alter your payments should your situation change.
If you don't meet the criteria above, investigate the other debt options that are available too, as you may be better suited to another debt solution, such as a debt management plan. There is no one-size-fits-all debt solution. It's vital you head toward the best possible way to resolve your debt.
Want to know if an IVA is suitable for you? Consult with a debt advisor first.