If you have debt problems that you are trying to solve, and considering an IVA; you must satisfy the following guidelines:
You must have at least £15,000 in debt. If you have debts that total in less than £15,000 then you should consider a debt management plan.
You must be a resident either in England, Wales or Northern Ireland. If you live in Scotland then an alternative product is available for you, this is called a protected trust deed.
You cannot be solvent. You are in difficulty in terms of paying back your debts; your debts are more than the equity in your home or the value of your properties.
You need to be able to afford at least £250 per month to pay back your debts. The reason being your creditors need to get at least 25% of their money back before they will consider an IVA.
You must have regular income and show that you are able to pay for your basic living expenses such as food, clothing, utility bills and any other necessary expenses.
You need to show a good attitude to its paying back your debts, and genuinely want to clear up your debts. Because your creditors need to feel comfortable that you are trying to pay back the debts.
I'm thinking of starting an IVA but my salary is very low, can I still arrange an IVA?
It really does not matter what your profession is whether you are a cleaner or a high street banker. You can propose an IVA as long as you have a regular income
The most important aspect of starting an IVA is that you have enough disposable income to satisfy the creditors that you can make the necessary payments and keep paying the agreed amount.
What are my options if I want to payback one creditor before another?
NO, this is against the law. You cannot put one creditor in front of the other in terms of preference of paying back your debts.
For example, if one of your friends owed you £1000 and he paid back another friend instead of you. This means he has preference of paying the other friend over of you. While proposing an IVA you cannot have preference of one creditor over another. Not only this is against the law, it also means your IVA has less chance of getting the votes of approval.
If you want to propose an IVA you need to include all your unsecured debts such as loans, overdraft, doorstep loans, Visa cards, credit cards, tax debts, student loans, store cards or any other unsecured loans.
Important information regarding IVA
If you are self employed you can include your business debts as well. For example, any trade supplier’s debt, HM revenue and Customs, income tax and VAT.
The process of starting an IVA is quite simple; it is carried out by a licensed insolvency practitioner. In the UK there are many of them unfortunately some of them are so expensive that they would not talk to you until you have paid them an up front fee.
Remember, if in any doubt or you feel pressurised by the insolvency practitioner or the firm to take out an IVA with them; the best thing you can do is say NO.
Why use us to set up your IVA?
If you have debts over £15,000 than our Insolvency Practitioners can help you by proposing an IVA plan for you. Our Practitioners are industry regulated with many years experience in dealing with people like yourselves. We believe in providing honest, professional and reliable service. Fill out our online no obligation enquiry form to arrange a callback from one of our specialist Insolvency Practitioners. They will be happy to listen to you and devise a plan that is best suitable for your situation.
