Starting an IVA

An IVA or Individual Voluntary Arrangement is a great option for anyone looking to solve their problems with debt. Anyone can enquire for an IVA when the need arises. What is important is disposable income to convince the creditors that you are capable of paying back the amount agreed upon.

Eligibility for an IVA

Eligibility for an IVA depends on an individuals personal and present financial situation.
Only residents of England, Wales, and Northern Ireland are eligible for an IVA.
Personal debts must be £15,000 or more, with at least three different creditors to be able to enquire for an IVA.
You must be insolvent or having a difficult time in paying off your debts; and also have the capacity to offer a reasonable amount as monthly payment to his creditors, usually starting at £200; this amount, however, will vary depending on the debt.

Covered Loans

The IVA covers any unsecured debt such as:

Those made on ones credit cards, store cards, catalogues, personal loans, student loans, overdrafts, business loans, and outstanding balances attained after the repossession of a home or vehicle.
Personal debts made to the Inland Revenue and VAT may also be covered by an Individual Voluntary Agreement; however, these debts may be treated differently in the IVA proposal.

Insolvency Practitioners

To start an IVA, a licensed Insolvency Practitioner or IP should be contacted. Individuals who intend to start an IVA are required by law to go through an Insolvency Practitioner. This IVA practitioner can help in carrying out the processes necessary for an IVA; however, Insolvency Practitioners do require fees for their services.

Try asking your IP for options on payments and charges; and if free consultations are made available, take advantage of it.

Starting an IVA is a good alternative to filing for bankruptcy. So make sure the eligibility requirements are met and the proper process is followed when undertaking an IVA. Be prepared and have all the appropriate documents ready.