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Individual Voluntary Arrangement

Individual Voluntary Arrangements or IVA

The recent uncertain economic times has seen many people faced with difficulty in paying their creditors. Many people are now turning to Individual Voluntary Agreements (IVA) as a means of escaping spiralling debt. Taking control of your debts is an important step for you and an Individual Voluntary Arrangements (IVA) is one tool at your disposal.

What is an IVA?

Consumers in debt are increasingly using an IVA as way of dealing with their debt problems. An IVA is a legally-binding form of dealing with you debts. Debt management plans are informal agreements and at the other end of the scale is the more drastic and severe step of bankruptcy. An IVA is in-between these two options.

An IVA is designed for people with debts who do have a reasonable level of income and can afford to make some payments on the amounts owing.

Qualifying for an IVA

An IVA is agreed in a set of criteria but it will vary from case to case:

  • Your debts should total more than £15,000
  • You have two or more creditors to pay
  • You must be employed or have an income that is reliable and not made up of benefits
  • You must be able to afford a quarter of the total amount owing and costs
  • You must not possess assets which, if sold, could pay off your debts in full
  • They are available to residents of England and Wales; Scotland has a similar option but are called ‘Trust Deeds’

Is an IVA the right choice for you?

Making sure an IVA is right for you is important! Contact Debt Advice Scotland to get honest, impartial advice on your debts. We will outline all the options available to you so that you can get your dents under control, keep your creditors at bay and look to a debt-free future.