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Do IVAs Work for Everyone?

Do IVAs work? This question depends on you personal circumstances, including how much debt you owe. One frequently asked question is ‘how much debt do I have?’. Learn more about how to find out how much debt you owe and whether an IVA could work for you.

How much debt do I have?

When you owe money to various creditors, it can sometimes be difficult to keep track of which companies you owe money to and the total amount of debt you have. A commonly asked question is ‘how much debt do I have?’. The first step to dealing with debt problems may be to find out how much debt you owe, whether this is for credit cards, Council Tax arrears, or any other debts you may have.

Your credit file may help you work out the amount you owe and who you owe money to. Although you can do this by asking credit reference agencies such as Experian for a copy of your credit report. You should bear in mind that, although, many companies report their accounts to credit reference agencies, they aren’t legally obliged to. This means that you may owe additional debts as well as those that appear on your credit reports.

If you need help finding out what you owe or managing debt problems, you can get in touch with us to discuss the best debt solutions for your personal circumstances.

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What are the next steps after finding out how much debt I have?

Once you’ve found out how much debt you have, the next step for you may be working out the best debt solution to help you, while considering aspects such as which debts can be written off and how to improve your credit.

Some commonly asked questions alongside ‘how much debt do I have?’ are:

  • Do IVAs work as a debt solution?
  • How does an active IVA work?
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Do IVAs work as a debt solution?

An IVA is a debt solution which allows you to have a formal agreement with your unsecured creditors based on what you can afford to pay back each month. Typically, at the end of an IVA the funds you still owe to creditors are written off.

Whether or not an IVA works for you will depend on your individual circumstances, however this may be the best option for you if:

  • You have a regular, sustainable income;
  • The IVA is more beneficial for your creditors than bankruptcy;
  • You have unsecured debts which total to a combined £6,000 or more (although this figure could be less).

Additional qualifying criteria may also apply alongside this list, you can find out whether you’re eligible by applying below.

Am I Eligible?

How does an active IVA work?

A qualified Insolvency Practitioner (“IP”) will work with you to create an IVA proposal which is sent to your creditors for approval. The proposal is usually based on an amount that is affordable for you to pay back over a certain period. While an IVA may be refused, most creditors will usually agree to the terms providing they are reasonable.

Following approval of the IVA, you’ll have time to repay debts while being legally protected from demands for payment from your creditors.

Further reading