IVA Calculator – How Much can You Write off?
One of the main questions asked about an IVA is how much debt can I write off? We’ve put together an IVA calculator to approximate the unsecured debts you could write off, based on the average amount our customers expect to write off.
How do I use the IVA calculator?
Using the IVA calculator is simple.
- On the left, On the top, you’ll see a slider for your debt amount. Just adjust this until the figure represents an approximation of how much you owe.
- On the right, Just below, you’ll see how much you might have to repay as well as an estimated figure for how much you may be able to write off.
The results are based on how much our clients already in an IVA expect to write off.
How does the calculator work?
The IVA calculator is an approximation and is based on the average amount our clients expect to write off. Although this figure differs based on everybody’s circumstances, our customers expect to write off – on average – around £10,600* worth of debt.
* Average unsecured debt anticipated to be written off for IVAs approved between 1 January 2021 and 31 December 2021 for FSS customers is £10,645.20, based upon successful completion.
What is an IVA?
You might want more information on what an IVA is and how it works before making an application, so we’ve covered some of the main things you might need to know.
An IVA is an agreement between you and your lenders to help get your finances back in control. One bonus of an IVA is that, once the arrangement successfully completes, any remaining unsecured debts included in the IVA are written off.
Standing for Individual Voluntary Arrangement, an IVA is an attractive solution for many. One of those reasons is due to being able to write off debt, and applicants frequently ask us how much they won’t need to repay.
An IVA is an alternative to Bankruptcy, and is an agreement between you and your creditors to repay what you can through affordable monthly payments. During this time, interest and charges are frozen which help make your debts much more manageable. When the IVA completes, any remaining funds you still owe to your unsecured creditors included in the IVA are written off.
Will an IVA write off all my debts?
Although some companies may suggest an IVA can completely write off what you owe, this is not true.
Not all debts can be included in an IVA, for example secured creditors which have to be dealt with separately outside of the IVA. With an IVA though, you may be able to write off a substantial amount of unsecured debt as you make payments which are affordable, and upon completion any remaining debt included in the IVA will be written off.
Do I qualify for an IVA?
An IVA might be a good debt solution for you if you meet the following IVA qualifying criteria:
You have unsecured debts of at least £6,000
Although this figure isn’t set in stone, an IVA isn’t available to those who only owe small sums.
You have a regular income
As payments must be made, only those with a regular sustainable income should apply. This could be through employment or benefits.
You have more than one creditor
Generally, IVAs are only available to those who owe money to multiple parties.
The IVA is better than bankruptcy
Your creditors must approve the IVA and, therefore, they should see they are getting a better return from the IVA rather than the alternative.
You aren’t based in Scotland
IVAs are not available in Scotland. However, something very similar exists there called a Trust Deed.