IVA requirements
IVA requirements are set by creditors and, even though it's correct to say that each and every IVA is unique, the basic IVA requirements remain consistent.
The minimum IVA requirements are outlined through the 'Straightforward Consumer IVA Protocol' and have been put in place by creditors to create a degree of uniformity to standardise IVA applications.
If you're considering an IVA as a possible debt solution, it's best if your circumstances meet these requirements, otherwise your creditors might reject your IVA application.
But don't panic if your circumstances don't meet these minimum requirements, just give us a call on 0800 088 7502 and we'll explore the option of a non-standard IVA.
Minimum Entry IVA Requirements
The minimum requirements for entry in to an IVA are as follows:
- There must be at least £10,000 of unsecured debt.
- There must be at least 3 debts owed to at least 2 separate creditors.
- The applicant's income must not be solely benefits based.
- Each applicant must agree to pay IVA payments based on affordability, but related to the size of their debt.
- Each IVA applicant must prefer to enter an IVA rather than declaring themselves bankrupt.
These IVA requirements form the current basis on which IVAs are being proposed, but they can at any time be subject to modifications. If you're unsure of the latest minimum requirements, call IVA.info for an update. Click here to see if you qualify for an IVA.
.Post Creditors' Meeting requirements
Once the proposed IVA has been accepted by creditors at the Creditors' Meeting, the terms and conditions that form the backbone of the IVA will bring a set of new IVA requirements.
They are as follows:
- There must be a review of the applicant's financial circumstances each year.
- The IVA applicant must declare any financial windfalls or extra income they might receive.
- They must also notify their IP of any changes to their circumstances, such as change of employment or address.
- Homeowners are required to explore equity release if they have sufficient equity at the end of fourth year.
Failure to adhere to these requirements could cause the IVA to be terminated so it's really important to fully comply with these expectations.
Professional IVA Help
IVA.info are IVA specialists and over the years we've helped thousands of people enter into IVAs of their own.
If you are concerned as to whether your circumstances meet the necessary minimum IVA requirements, please call 0800 088 7502 where one of our team is waiting to help you.
Alternatively, complete this form and one of our advisers will contact you at your preferred time.
