IVA criteria

The IVA criteria used by Insolvency Practitioners and your creditors are not fixed in stone and can alter by individual case. However we can say what the main IVA criteria are and whether an IVA is going to be a debt solution you can consider.

The main IVA criteria are:

  • You are a resident in England, Wales or Norther Ireland (not Scotland)
  • You should be unable to repay all of your debts and therefore technically insolvent
  • You should owe more than £15,000 to 3 or more companies
  • You should be able to repay 25% or more of your debt
  • You are in stable employment / self employment
  • You can afford to live and have budgeted in a reasonable and fair way with modest living expenses (no big luxuries can be expected e.g. you are not likely to get away with Satellite TV or an expensive flat)
  • Declare and contribute towards your debts from big assets like equity in your home, savings accounts, shares, endowment policies, expensive car etc.
  • Proof of income, expenditure and asset value

You can't however decide that you want an IVA. It has to be chosen with you and for you by an Insolvency Practitioner that are part of IVA companies.

Applying for an IVA

To get immediate help now, use our IVA advice service which is accessed via charity advisors. They are experts in assessing whether an IVA is the best solution for you and helping you organise one if that's what you want.


Summary

What is an IVA

  • Introduced by the Government in 1986 as a way of helping individuals not become bankrupt
  • You need to owe more than £15,000 and you or your partner be employed
  • Typically you can write-off 50% - 60% of your debt and pay the balance over 5 years (60 months)
  • Interest and charges stop and creditors can't change their mind
  • Your home is protected but you will be required to release any equity you have any
  • It's a popular debt solution with nearly 40,000 IVA's started in 2008, that's one every 13 minutes
  • We only recommend organisations that have a track record of getting IVA's accepted by creditors and don't charge fees


Comparison Table Of Debt Solutions

  Solutions Debts Written Off Legally Binding Interests & Charges Residential Status  
 
Average 58%*
Yes
Stopped
Tenant or Homeowner (Eng/Wales)
  
 
Not Normally
No
Many Freeze
Tenant or Homeowner
  
 
Consolidated
Yes
New Rates & Charges
Tenant or Homeowner
  
 
Bankruptcy is a severe last resort if you are in serious debt and no other debt solution can save you from going bankrupt. Bankruptcy may protect you from your creditors and allows you to start fresh, but you need to think carefully about all the implications involved.
  
 
*58% was the average debt write off with an IVA, April - June 2008, CCCS
  
     

 

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