For someone with serious financial problems, the prospects of using an IVA to clear their unsecured debts is going to be dependent on whether or not their personal circumstances qualify them for an IVA in the first place.
Just because a person wants to apply for an IVA, it doesn’t mean their case will be suitable, and there are quite tight criteria that must be met before the IVA application can stand a chance of approval at the Creditors meeting.
One such qualifying point will be the number of creditors involved in the potential IVA.
As a Minimum Requirement, to qualify for the IVA a person should have at least 2 creditors.
This means that when the applicant’s debts are listed, there must be at least 2 different company names on the list.
If a person has a loan and an overdraft with the same bank, and maybe a credit card too, the 3 debts would all be with the same bank, and therefore would be viewed as just 1 creditor. So if the person wanted to qualify for an IVA, they would need to have another unsecured debt as well.
Take this link for a full description of the miminum requirements needed to qualify for an IVA.
If you are unsure whether you qualify for an IVA, call My IVA Adviser for free on 0800 088 7503 anytime, and one of our specialist IVA advisers will discuss your circumstances with you in complete confidence.
Or if you would like further information read this.
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