Published in on Thursday, April 23 2009 by Ideal Debt Solutions
IVAs (individual voluntary arrangements) are designed to help people who are in debt but wish to avoid bankruptcy. They are contractual repayment arrangements with your creditors which are legally backed and which don’t involve the high costs associated with a bankruptcy.
An IVA may be the right solution if you are struggling with debt – but they aren’t for everyone, and there are some financial disadvantages so it’s essential to seek objective advice from experts with many years’ experience in debt management.
Criteria
You may be able to consider starting an IVA to deal with your debt problems if you meet the following criteria:
• You must be a resident of England, Wales or Northern Ireland. If you live in Scotland, you will need a Protected Trust Deed.
• You must have UK debt in pounds sterling.
• You must be insolvent. This means that you are having difficulties paying your debts or that your debts exceed the value of the equity in your home.
• Your debts must be greater than £15,000 in total.
• You must be able to afford a minimum of £200 each month towards paying off your debts. To achieve this, you will need to be able to show a regular income and that you can afford to meet all your essential living expenses including food, clothing and utility bills – whilst still making at least the minimum IVA payment.
Anyone meeting these criteria may be able to start an IVA.
If you need help with your debts, you will read a huge amount of helpful information within these pages. It’s essential to seek expert personal finance advice from licensed debt counselors who will be able to advise on IVAs and various other options for debt management.