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IVA : How Much Debt Do I Need to Qualify for an IVA ?

Not everyone who wants to use an Individual Voluntary Arrangement (IVA) as a debt solution will be able to do so.

There are strict conditions that must be met before a person with serious financial troubles can apply for an Individual Voluntary Arrangement (IVA).

Here are the main conditions a person is required to have before they can consider an Individual Voluntary Arrangement (IVA) as a potential solution:

They must have a total debt of at least £12,000. The size of each individual debt is not important, but when added together they must be at least £12,000. It is also true that the higher the total debt, the more obvious the IVA advantages are. As the total debt level increases the IVA benefits become easier to recognise and the chances of a significant debt write-off increases.
There must be at least 2 different Creditors with debts over £1000. Even though all unsecured debts can will go into the IVA no matter what the value of the debt, technically a creditor would only count towards the two required for qualification if they are owed more than £1000.
Any loans should be at least 3 months old. People who have taken out loans within a 3 month period of an IVA application may find the creditor is less willing to agree to an IVA. Especially if circumstances indicate that the applicant knew they would be unable to repay the debt at the commencement of the loan.
N.B.: This time limit can be reconsidered when the loan was used for consolidation purposes or a rescheduling of a pre-existing loan with the same creditor.
The monthly payments must be at least £150. The minimum payments for each IVA will vary in proportion to the size of the debt and the disposable income of the client. To find out more on the size of your Individual Voluntary Arrangement (IVA) payment click here.

For further information on IVA’s take this link to read our selection of IVA articles.

If you would like to see if you qualify for an IVA try our powerful online calculator.

And don’t forget you can call the IVA Specialists at My IVA Adviser for free on 0800 088 7503 anytime to discuss your personal circumstances with one of ourIVA advisers in total confidence.