IVA Qualification Requirements
The IVA involves a major commitment. There are certain IVA qualification criteria that must be fulfilled before an IVA can be approved for a person. The most common IVA qualification conditions include the following.
ü The person must live in England, Wales or Northern Ireland. IVA is not available to residents of Scotland. However, the Scottish government runs a similar program called a Trust Deed in its area.
ü The indebted person is struggling to make payments to their unsecured creditors.
ü The financially troubled person must owe at least £7,000 in debt to unsecured creditors. If the person owes less than £7,000, they may be eligible for other debt solution.
ü The person must have a regular source of income.
ü The person should be able to pay at least £90 into the IVA on a monthly basis.
ü In order to qualify, the person must have at least 2 lines of credits that they are unable to settle.
ü The IVA program must offer a return for the creditors that is higher than any return from a bankruptcy declaration.
How Can I Get an IVA?
If you have been overburdened by debt and struggling to make payments, then you may want to consider an IVA debt solution. The IVA helps you in avoiding bankruptcy while also giving you breathing space to organize your finances better.
It can also help protect your assets against claims from unsecured creditors. The IVA debt solution can be sustained even by people who do not have a lot of money saved up in bank accounts.
To get an IVA debt solution, you will need to speak with a qualified Insolvency Professional (IP). The professional will go over your financial details, your debt situation, and your regular income. They will also consider any saved up assets or property to determine if you qualify for the program.
In order to get the best advice and solution for your debt problem, it is recommended that you should provide as much information as possible to your IP. Once your IP has reviewed your case, they will inform you if you are eligible for the arrangement program.
Fulfilling Eligibility Criteria
The first condition for eligibility is that your total debt must be over £7,000. If your debt is lower than this amount, you may be eligible for a different debt solution.
The second condition involves regular income. Individuals with the following sources of incomes are acceptable for the program.
ü Permanent full-time employment
ü Part-time employment
ü UK Gov benefits
ü Pension income
ü A regular contribution from a third party
The third condition for IVA qualification is that your creditors agree to the removal of your debts after 5 or 6 years upon completion of the IVA program. This will happen when your creditors see that the IVA program gives them a better return rather than making you bankrupt.
The Individual Voluntary Arrangement or the IVA program offers many benefits to individuals and families that are struggling with financial difficulties or debt. It is a quick way to get out of debt that ensures your debts do not become worse over time and your life is not adversely affected. It allows you to pay back debt when it is convenient for you.
IVA debt solution is also favoured by creditors as they are assured repayments on their debt rather than forced to write them off as bad debts.