Check if You Qualify

How Do I Know if I do Qualify for an IVA?

We understand how concerned you are about your situation and are constantly worrying about whether or not you can have your debt lowered through an IVA. As flexible as an IVA can be to suit your situation, it also comes with a specific criteria that the applicants have to fulfill. This page guides you on the different aspects you need to take care of to be eligible for an IVA.

Earn a Regular Income

To be approved for an IVA, you must have a stable and regular stream of income. Once you get an IVA, you will be required to make a monthly payment to your creditor. Yes, the amount if likely to be small and affordable, but you will have to pay it off on a monthly basis. You can do that regularly and conveniently only if you have a fixed and decent regular income. In case, your income changes every month, getting an IVA may not be a suitable option for you.

Have Some Spare Income

Apart from having a stable, regular income, you must also have some extra income every month to easily pay off your lenders. This amount varies from case to case, but is usually between £70 and £100. If you have some spare funds or are involved in a side hustle that promises a certain, fixed income every month, you would find it easy to pay off the IVA installments on time.

Have a Lump Sum Amount

IVA is a very flexible debt solution that suits a wide range of financial circumstances. In case, your regular monthly income does not allow you to set aside some money to spare for the IVA installments, and neither do you have some additional income pouring in every month, but you do have an asset or something that can be sold to get a lump sum amount, you can still apply for an IVA.

If you are the heir to some asset that can be sold, or have been left with some money in a will, you must include it in your IVA documentation and can use that lump sum amount to pay off your debt. You can also use a combination of your extra monthly income and that lump sum amount to have your debt written off through an IVA.

If you do have a defined contribution pension, you can use part of it to get a lump sum amount for your IVA. This does mean that you will have less money when you retire which is why it is best to discuss this aspect with our experts here at Get Me Debt Help so we can guide you on the most suitable approach according to your situation.

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Assets

Assets are your possessions with a significant monetary value such as real estate, car, home etc. While there is no mandatory rule for you to have any of these in your name to qualify for an IVA, having an asset means, you can sell them for money and use that to pay a lump sum IVA amount or easily manage the monthly IVA installments.

After you agree to opt for an IVA, your IP discusses all your assets with you in detail and guides you on whether or not they should be included in your IVA. This is why you must be honest about this information so it can be used in the best possible manner to help you get the right IVA offer.

Own a House

In case, you do own a house, you will be required to have its valuation in the final year of the IVA. In case, there is some equity in that property, you will have to re-mortgage your house and gather a lump sum amount to add to the IVA.

Equity refers to the money you will make from selling off a property after all the secured loans and mortgage has been paid off. You would not need to sell your house to manage the lump sum amount and if you are asked to do that, get in touch with an expert right away to save yourself from a scam. In case, you cannot re-mortgage, you will move on to pay off the routine monthly installments for 12 months instead.

Complete a Certain Budget

Prior to getting an IVA, analyze your monthly budget to figure out the exact amount you earn and the amount you can spare every month. This helps you analyze whether or not you will be able to afford an IVA agreement. It is crucial to make an informed decision right now instead of getting an IVA hastily and not being able to pay off the installments later on.

Have More Than 1 Creditor

Since an IVA allows you to combine all your debts and pay one monthly installment to easily pay off the consolidated amount, it is crucial to have more than 1 creditor to qualify for an IVA. Usually, those who are approved for an IVA have 2 or more creditors. If you have just 1 lender, there are debt solutions you can exercise.

Reside in England, Northern Ireland or Wales

IVA is a debt solution operational specifically to the citizens of England, Northern Ireland or Wales. This means you must be residing in these areas in order to be eligible for an IVA. This debt solution is not available in Scotland so if you live in Scotland, you will have to look for other solutions in place of an IVA.

Owe a Minimum of £6000 in Debt

You should owe around £6000 in your unsecured debts to be eligible for an IVA. If your debt amount is less than that, there are other debt solutions that you can opt for. This is why it is important to have experts alongside so you can discuss your matter with them and opt for the most effective and appropriate debt solution accordingly.

How Can I Get My Debt Written Off with an IVA

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