Individual Voluntary Arrangements are available to anyone in the UK regardless of their profession. However whether a person qualifies for an IVA can depend on a number of factors.

The criteria below are intended as a guide. The IVA criteria are not completely fixed and most creditors will look at a case on its own merits.

Size of Debt

To qualify for an IVA you must generally owe at least £15000 in unsecured debt. However in some circumstances an IVA based on a lower amount of debt may be accepted.

Type of Debt

The types of debt allowed into an IVA include all loans; credit cards; store cards; catalogues and overdrafts, as well as tax and VAT for the self employed. Mortgages, secured loans and Hire Purchase are excluded from an IVA.

Number of Creditors

While there is no legal minimum number of creditors needed to qualify for an IVA Insolvency Practitioners usually prefer that you have at least three separate creditors. The reason for this is that having multiple creditors increases the likelihood of the IVA being approved.

Employment Status

For an IVA to be suitable you will usually have to be employed and so have a regular income. However there are Individual Voluntary Arrangements accepted every year in which this requirement isn't met. For example if you are on long term sickness benefits and have a partner working, if the your partner is prepared to support the IVA application then the creditors may accept it.

Assets

It is also expected that you do not have any material assets capable of disposal which could pay off the debts (equity release on property; swapping an expensive car for a cheaper version).

I-V-A.org.uk is part of a group of Licensed Insolvency Practitioners who are legally able to prepare and manage your IVA from start to finish. As part of our service we are able to provide you with free impartial debt advice to help you find the best solution to your debt problems. To speak to one of our advisors simply call us on freephone 0800 054 50 43 or alternatively complete our enquiry form.