Four signs that an IVA could be the debt solution for you
There are a lot of different debt solutions available. How do you know if an Individual Voluntary Arrangement (IVA) is going to be suitable? Here’s four signs that might help you to decide.
1. Your debt is over £15,000
IVAs are for serious debt. While some people enter into an IVA with less debt, it is usually only recommended for £15,000 debts or over.
2. Your debt is owed to three or more creditors
By different creditors they need to be completely unrelated, for example, they can’t be debts on three different accounts with the same bank. Don’t forget that things like mortgages, hire purchase debts and fines like parking infringements can’t be included in an IVA .
3. You are in regular employment
You’ll need to have steady, regular employment to get your IVA to be approved so the creditors know they have a guaranteed payment each month.
4. You can afford a minimum payment amount every month
For your IVA to be approved your creditors will have to agree on a minimum monthly payment. That minimum amount will depend on your individual circumstances debt experts can advise you confidentially. If your disposable income will allow you to make these payments then an IVA could be a good option for you.
There is no one-size-fits-all solution with debt. The only way to know if an IVA is going to be the best solution for you is to get professional advice. At Debt Advice Trust we can give you impartial, unbiased advice on our free helpline. Or get involved in our new online forum where our debt advisors can answer your IVA questions.
