Is an IVA Right for Me?

Whether or not an Individual Voluntary Arrangement (IVA) is right for you depends on your circumstances - we’ve created a guide to help you decide whether an IVA is the best debt solution for you.

An IVA is a popular debt solution which can help to deal with unsecured debts and restore control of your finances. But is an IVA right for you? Take a look at some of the factors to consider, such as how much debt you have, whether you’re eligible for an IVA, the pros and cons of an IVA, and whether you could write off some of your debt with an IVA.

An IVA might be a good idea if the following applies to your circumstances:

  • You want to write off some of your debts
  • You owe debts to multiple creditors
  • You’re unable to pay the contractual amounts to your debts currently, but could afford a monthly repayment

Is an IVA right for you?

Here are some of the ways you can tell if an IVA is the best way to deal with your creditors and your unsecured debts:

I want to write off my debts

If you can’t see a way to realistically pay what you owe in full over a reasonable timeframe, an IVA may be the best option for you.

The ability to write off unsecured debt is one of the most attractive reasons for choosing an IVA. Although there is no set amount routinely written off, you could write off up to 83.8% of your unsecured debt*.

* Based on our customers who had an IVA approved in January 2021, 10% will write off on average 83.8% of their unsecured debt and 50% will write off on average 71.6% of their unsecured debt upon successful completion.

I want someone else to deal with my creditors

If you owe money to multiple creditors, and they’re all demanding payment, this situation can be stressful to say the least. Another benefit of an IVA is that an appointed professional, known as an Insolvency Practitioner, will deal with creditors on your behalf.

Therefore, once this agreement comes into effect, most forms of communication with these organisations should gradually cease. You should not receive a demand for payment while the IVA is active.

Consequently, this is a great solution for ensuring peace of mind.

I’m unable to pay my debts

An IVA is a form of insolvency which means you should be in a position where you realistically cannot afford to repay your debts.

I’m happy with the repayment period

An IVA isn’t a quick solution to your debts. Under most circumstances, an IVA will last for around five to six years. Given the benefits of this solution though, many consider the time limit worth it.

I’m able to make the monthly repayments

Throughout the length of an IVA, you will make affordable monthly repayments towards your debts. The specific figure will be agreed during the initial stage and reviewed throughout the term of the IVA, but you should have a reliable source of income to ensure that payments continue to be made. Although circumstances change, and this figure can sometimes be adjusted to suit your needs, the repayments are something worth considering before committing to an IVA.

Write off your debt

But do I qualify for an IVA?

If you’re thinking that IVA is a good option for you, or if you’re still not sure if you’re eligible, you can look at the overview of qualifying IVA criteria:

  • You can make the monthly repayments;
  • You owe more than £6,000 of unsecured debt;
  • You owe money to more than one creditor;
  • You are resident in England, Wales or Northern Ireland

If you fulfil the points mentioned so far then an IVA may be a good option for you. Get in touch and we’ll let you know if you’re eligible. We’re experienced in working out whether an IVA is likely to be accepted by your creditors - 95.35% of our customers have had their IVA proposal accepted by their creditors.*

Do I qualify?

* Based on our customers who proposed an IVA in January 2021 95.35% were accepted by creditors.