{"id":420,"date":"2013-12-12T12:32:25","date_gmt":"2013-12-12T12:32:25","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=420"},"modified":"2019-01-25T12:36:26","modified_gmt":"2019-01-25T12:36:26","slug":"get-out-of-debt-with-an-iva","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/get-out-of-debt-with-an-iva\/","title":{"rendered":"Get out of debt with an IVA"},"content":{"rendered":"\n

Yes, an IVA<\/strong>\u00a0will\u00a0help you get out of debt<\/a>\u00a0\u2013 but with a few provisos. In the first instance you have to be eligible to enter into an Individual Voluntary Arrangement (IVA). <\/p>\n\n\n\n\n\n\n\n

Not everybody is eligible. You can only enter into an IVA<\/a> if you are insolvent<\/strong>. How do you know if you are insolvent? Many books have been written on this subject but perhaps the simplest way of determining whether you are insolvent is to ask yourself two questions:<\/p>\n\n\n\n

  1. Am I unable to pay my debts as they fall due?<\/strong><\/li>
  2. Do my liabilities outweigh the value of my assets?<\/strong><\/li><\/ol>\n\n\n\n
    \"Insolvency\"<\/figure><\/div>\n\n\n\n

    It is generally accepted that an individual is insolvent if he \nanswers \u2018yes\u2019 to either of these questions. If he answers \u2018yes\u2019 to both \nquestions, then there is little doubt but that he is insolvent.<\/p>\n\n\n\n

    The first question is called the \u2018cash flow test\u2019 and the second \nquestion is called the \u2018balance sheet test\u2019. They were originally \ndevised as tests of the insolvency of a company but they are nowadays \napplied equally validly to individuals.<\/p>\n\n\n\n

    Assuming you are insolvent, you must ask yourself if an IVA is the \nbest solution for your circumstances. It may be that Bankruptcy is a \nbetter solution. Alternatively, you may be able to negotiate reduced \npayments with your creditors so that over time you will be able to pay \noff your debts in full. You may be able to negotiate freezing of \ninterest, penalties or other charges on your debts and combine this with\n reduced payments to your creditors, repaying your debts in full over \ntime. These options are usually called Debt Management Plans and you may\n administer them yourself or engage a specialist Debt Management company\n to assist you.<\/p>\n\n\n\n

    To do an IVA, your total debts will probably exceed \u00a312,000 and you \nprobably need to have disposable income of \u00a3200 per month or more or be \nable to offer a lump sum to your creditors. These figures are not set in\n stone but they are the yardsticks used in most IVAs.  An IVA offering \nmonthly contributions of \u00a3200 or more will probably last for five years.<\/p>\n\n\n\n

    There are some disadvantages to entering an IVA, particularly the \neffect on your credit rating which will last for six years from when \nyour IVA commences. However if you stick to your IVA agreement, you will\n be debt free at the end of the term, which is usually about five years.<\/p>\n\n\n\n

    To determine if you are insolvent and to obtain advice on all of your\n options, contact a reputable provider of insolvency services. Initial \nadvice should be free.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Yes, an IVA\u00a0will\u00a0help you get out of debt\u00a0\u2013 but with a few provisos. In the first instance you have to be eligible to enter into an Individual Voluntary Arrangement (IVA).<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-420","post","type-post","status-publish","format-standard","hentry","category-iva-articles"],"_links":{"self":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/420","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/comments?post=420"}],"version-history":[{"count":2,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/420\/revisions"}],"predecessor-version":[{"id":443,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/420\/revisions\/443"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=420"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=420"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=420"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}