Individual Voluntary Arrangements have a few restrictions, but are generally pretty flexible, and can help a lot of people to get themselves into better situations. Whether an IVA will help you is something you can only establish with professional advice.
IVAs are designed for individuals (rather than companies or organisations) who have personal debts totalling at least around £12,000. The debts should be owed to at least 3 different lenders.
When these circumstances do in fact apply, an IVA can be an effective measure in handling your financial woes. However, it’s always best to get the advice of a professional who can make sure you’re kept informed of all the options that apply to your case.
For example, there may be other options that can help you to avoid bankruptcy, such as selling any assets that you may have, or releasing equity from them. A number of debt consolidation options are also available, and debt management advice can help to navigate these.
If you do decide to go for an IVA, there are other requirements that will need to be fulfilled before the arrangement can go ahead. Your Insolvency Practitioner will need to establish that you can in fact afford to make the monthly ongoing payments that an IVA will require. In most cases, the monthly payments will not be less than around £200, although this will vary according to your own circumstances and the IVA proposal that you opt for.
Your IP will need to get an overview of your finances, looking at your income, your outgoings, your assets if you have any, and all of your existing debts. Using this information, the IP will be able to establish whether an IVA is going to be a realistic and effective option, and if so help you to propose one.
If you do end up securing an IVA, it can genuinely offer you the chance to work towards settling your debts. IVAs have helped many people to avoid bankruptcy, and if successful, once the term has elapsed you can look forward to repairing your credit rating and putting your life on a more positive track.