An Individual Voluntary Arrangement is often a very good way of dealing with a debt problem. However, there are a number of criteria that must be in place before you can propose an IVA to your creditors.

Debt of more than £18,000
The IVA is designed to deal with more serious debt problems. For this reason, to consider an IVA, your unsecured debts will normally have to be over £18,000. If your unsecured debt is lower than £18,000 you may want to consider one of the alternative solutions such as a Debt Management Plan.

Where to start

• Choose the solution – Use the “Which way should I turn” form to get your FREE DEBT REPORT
• Ask the experts – use the Beat My Debt Forum
• Call us now – speak to one of our advisors in confidence to see if an IVA can work for you.

Take the first step to beating your debt NOW – Call us free on 0800 077 6180

An IVA, it may not always be the right solution for debts over £18,000. If you do not have a property (perhaps you are renting your house) then other ways of resolving your debt problem may be worth consideration . For example, if you enter into an IVA you will be bound to repay into the arrangement for 5 years where as if you had declared yourself bankrupt, you would only need to make payments for 3 years.

You must be insolvent
Normally if you have a debt problem you will be struggling with your monthly repayments. However, before doing an IVA you will be asked to look very careful at your monthly expenditures to make sure that you are not overspending in any areas and that your expenditures are reasonable. If you are truely struggling to pay your debts, it is extremely likely that you are insolvent.

In addition, you will have to look at any equity you have in properties that you own. If the total of your equity is greater than your debt, then you are not classed as insolvent and you will not be allowed to undertake an IVA.

Sustainable Income or lump sum
No-one can be sure that their income will remain stable for ever. However, before you enter into an IVA you should be able to prove that you have a steady form of income. 

If you do not have a steady form of income, you may still be able to carry out a full and final settlement IVA if you can make available a lump sum of money. 

Proof of expenditure
You will normally have to prove your monthly expenditures with paperwork (such as a mortgage or rent statements and copies of recent bank statements).

Resident of England / Wales / N Ireland
You must be resident in England, Wales or N/Ireland and have a stable income which you can prove with either wage slips or company accounts if you are self employed.