IVA : How Much Debt Do I Need to Qualify for an IVA ?

Not everyone who wants to use an Individual Voluntary Arrangement (IVA) as a debt solution will be able to do so.

There are strict conditions that must be met before a person with serious financial troubles can apply for an Individual Voluntary Arrangement (IVA).

Here are the main conditions a person is required to have before they can consider an Individual Voluntary Arrangement (IVA) as a potential solution:

• They must have a total debt of at least £15,000 The size of each individual debt is not important, but when added together they must be at least £15,000. It is also true that the smaller the total debt, the less obvious the IVA advantages will be, so quite often an Individual Voluntary Arrangement (IVA) will not be an appropriate solution with debts below £20,000


• There must be at least 4 different Creditors with debts over £1000. Even though all unsecured debts can will go into the Individual Voluntary Arrangement (IVA), no matter what the amount, technically, to qualify for an Individual Voluntary Arrangement (IVA), a creditor can only be counted as one of the 4 required as a minimum, if they are owed more than £1000. This is to make sure that there is a reasonable balance of votes at the Creditors Meeting in the more marginal Individual Voluntary Arrangement (IVA) cases.


• Any loans should be at least 12 months old. People who have taken out loans within a 12 month period of an Individual Voluntary Arrangement (IVA) application will find it more difficult to convince their creditor that they intended to make a full repayment when they took out the loan in the first place. N.B.This time limit can be reconsidered when the new loan is a consolidation loan of several existing debts, or an increase of an existing debt with the same creditor.


• The monthly payments must be at least £250. The minimum payments for each Individual Voluntary Arrangement (IVA) will vary, depending on the size of the debt, and the disposable income of the client, to find out more on the size of your Individual Voluntary Arrangement (IVA) payment click here.

For further information on Individual Voluntary Arrangements (IVAs), take this link to read our selection of IVA articles.

If you would like to see if you qualify for an IVA ask 'The Debt Detective', our powerful online calculator.

And don't forget you can call IVA Specialists at www.myIVA-Adviser.com for free on 0800 088 7503 anytime to discuss your personal circumstances with one of our IVA specialists in total confidence.

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