Do I qualify for an IVA?
It's the first question that each potential applicant must ask themselves.
These qualifying criteria are for guideline purposes only:
- You should have unsecured debts of £10,000 or more.
- You should have 2 or more different creditors.
- You should be insolvent.
As already mentioned these points are only guidelines and each case will be assessed on its own merits, but let's take each point one at a time:
Debts above £10,000
Technically there is no minimum debt level required to enter an IVA, however, IVAs are generally considered most suitable for debt levels above £10,000. Below a debt level of £10,000 an IVA generally becomes less suitable than the alternatives solutions.
Minimum of 2 creditors
Having 2 creditors or more tends to give the IVA a better chance of acceptance, as creditors recognise the benefit of being treated with equality.
You must be insolvent
Your debt must be greater than the value of your assets, or you must not be able to repay your debts as they fall due.
Homeowners Please Note: Even if there is sufficient equity held within the value of your home, sufficient to clear your debt in full, you may still qualify for an IVA.
Every IVA contains an 'Equity Clause' which provides protective restrictions limiting your creditors ability to gaining access to your equity.
Nonetheless, for peace of mind, you should call 0800 088 7502 to discuss whether an IVA is a viable solution for you.
Applying for an IVA needs careful consideration and it's important that your circumstances are assessed thoroughly by an experienced IVA specialist before you commit yourself to the process.
To arrange a free, no obligation, consultation with an IVA specialist call 0800 088 7502.