To qualify for an IVA (Individual Voluntary Arrangement), you must meet certain criteria:
- You must have at least two debts that you are struggling to repay.
- You must owe a minimum of £6,000 in total to your creditors.
- You must have a regular income that allows you to make monthly payments towards your debts.
- You must be a resident of England, Wales or Northern Ireland.
- You must be insolvent, meaning that your debts exceed your assets and you are unable to pay your debts as they fall due.
If you meet these criteria, you can contact an Insolvency Practitioner (IP) who will assess your financial situation and advise you on whether an IVA is suitable for you. The IP will also help you to set up the IVA and will act as a supervisor throughout its duration.
What If I Am A Homeowner?
Yes, you can do an IVA if you are a homeowner. However, being a homeowner may affect the terms of your IVA, and it is important to understand how it could impact you before entering into the arrangement.
If you have equity in your home, meaning that its value exceeds the amount of your outstanding mortgage, you may be required to release some of that equity to pay off your creditors as part of the IVA agreement. This could be done by remortgaging or by selling your home, but it is important to note that you will usually be allowed to keep a certain amount of equity to ensure that you have a reasonable standard of living.
It is also important to note that if you are in arrears on your mortgage payments, an IVA may not be the best option for you. In this case, you should seek professional advice from an Insolvency Practitioner or a debt advisor to explore alternative debt solutions that may better suit your circumstances.
Can I Do An IVA If I Am Unemployed
To qualify for an IVA, you must have a regular income that is sufficient to make monthly payments towards your debts. If you are unemployed, you may not have a regular income, which could make it difficult to meet this requirement. However, if you have other sources of income, such as from a pension or benefits, this may be sufficient to meet the criteria.
It is also important to note that an IVA is a legally binding agreement that requires you to make regular payments towards your debts for a period of typically five to six years. If you are unemployed, there is a risk that you may not be able to make these payments consistently over the duration of the IVA, which could lead to its failure.
What If I Live Abroad
It may be possible to do an IVA if you live abroad, but it would depend on your individual circumstances and the terms of the IVA agreement.
To qualify for an IVA, you must owe at least £6,000 to two or more creditors and be a resident of England, Wales or Northern Ireland. If you live abroad, you may not meet the residency requirement, which could make it difficult to enter into an IVA in the UK.
However, it is still possible to enter into an IVA if you are a UK citizen and have debts with UK creditors, even if you live abroad. In this case, you would need to work with an Insolvency Practitioner who is licensed to act in the UK and can help you set up an IVA remotely.
It is important to note that if you do enter into an IVA while living abroad, you will need to make regular payments towards your debts and communicate with your Insolvency Practitioner regularly. This may be more difficult to do if you are in a different time zone or if you do not have access to reliable communication channels.