If you’ve tried your best to repay your debts but the situation seems to be getting more and more precarious by the day, then you may be at the point where you are looking at the various debt relief options that are open to you, such as an IVA, for example.
If so, then you may also be wondering if you even qualify for an IVA or whether you should really be looking at some of the other debt relief options available? With this in mind, let’s look at the main points in the qualification criteria for an IVA, to see if it might be suitable for you.
What kind of debts can be included in an IVA?
The first thing you’ll need to think about when considering an Individual Voluntary Arrangement (IVA) is what types of debt you’ll be able to include. As a general rule, most non-priority debts can be included in an IVA. Non-priority debts usually include debts like personal loans, store cards, credit cards, catalogue debt and the like. It is also possible to include some priority debts in and IVA, such as tax debts (including council tax) and utility bill debts like gas and electric arrears. While you can technically include mortgage and secured loan arrears in an IVA, you will need to get the permission of the lender for those to be included, and it is less likely that they would agree as they would probably be more inclined to use the security on offer to recoup their money, by repossessing your house, for example.
How much debt can you include?
While there aren’t technically any limits to the number of debts or the total amount of debt that can be included in an IVA, there may still be some limitations, simply because 75% of the lenders involved (by amount) need to agree to the IVA for it to be put into place. For this reason, IVA’s are usually suitable for those people who have more than £10,000 of debts which are eligible and who also have more than two creditors, with at least three separate debts involved.
Can you have a joint IVA?
The simple answer to this question is no, you can’t take out a joint IVA. It may, however, be possible to include jointly owned debts in an IVA, but it might not make sense to do so as the other person may still be liable for any debt left over when the IVA has reached its completion. If you are wondering which debts you should include in an IVA then it would be good to seek some professional help from an insolvency practitioner.
We hope that this post has given you a clearer idea as to whether an IVA is a suitable option for you in your quest to resolve your debt problems. If you are still unsure as to how to proceed, then be sure to get the correct professional advice so that you get the most suitable debt relief option for your own personal circumstances.