For someone with serious financial problems, the prospects of using an Individual Voluntary Arrangement (IVA) to clear their unsecured debts is going to be dependent on whether or not their personal circumstances qualify them for an Individual Voluntary Arrangement (IVA) in the first place.
Just because a person wants to apply for an Individual Voluntary Arrangement (IVA), it doesn’t mean their case will be suitable, and there are quite tight criteria that must be met before the Individual Voluntary Arrangement (IVA) application can stand a chance of approval at the Creditors meeting.
One such qualifying point will be the number of creditors involved in the potential Individual Voluntary Arrangement (IVA).
As a Minimum Requirement, to qualify for the Individual Voluntary Arrangement (IVA) a person must have at least 4 creditors, owed at least £1,000 each.
This means that when all the person’s debts with the creditor’s contact details are listed, there must be at least 4 different company names on the list, if an Individual Voluntary Arrangement (IVA) is the solution being looked into.
For example, for an Individual Voluntary Arrangement (IVA) to be an available option.
If a person has a loan and an overdraft with the same bank, and maybe a credit card too, the 3 debts would all be with the same bank, and therefore there would be just 1 creditor. So if the person wanted to qualify for an Individual Voluntary Arrangement (IVA), there would need to be a minimum of perhaps another 3 credit card companies, or another 2 credit card companies and a store card, or any other combination.
An Example of where an Individual Voluntary Arrangement (IVA) is not an option would be where a person had 4 debts with 1 creditor, or 4 debts with 2 creditors, or 4 debts with 3 creditors.
Take this link for a full description of the miminum requirements needed to qualify for an Individual Voluntary Arrangement (IVA).
If you are unsure whether you qualify for an Individual Voluntary Arrangement (IVA), call My IVA Adviser for free on 0800 088 7503 anytime, and one of our specialist IVA advisers will discuss your circumstances with you in complete confidence.
Or if you would like further information read this.