Do You Qualify for an IVA?
IVA Eligibility
Qualifications Needed for an Individual Voluntary Arrangement
- You have unsecured debt of £7,000 or more (this refers to credit not secured against an asset, such as property).
- Your debts are owed to two or more creditors.
- You must reside in England, Wales, or Northern Ireland.
- You have a stable income that enables you to make regular monthly payments of at least £100.
The criteria listed above are specific to our services and may differ from those of other providers.
IVAs are subject to individual suitability and criteria. They are available for residents of England and Wales. Please note that fees will apply, and your credit rating may be impacted. For more information on the associated risks and benefits, click here.
What Happens If My Circumstances Change?
Will My IVA Be Impacted?
If you find that your circumstances have changed or are about to change, it’s important not to stress. There are several ways to address this while on an IVA.
Once you inform your Insolvency Practitioner about the changes in your situation, they will negotiate with your creditors on your behalf.
They may be able to agree on one of the following options:
Reduction in Payments
If your financial situation worsens and you can no longer afford the agreed monthly amount, your creditors may agree to allow you to pay a reduced contribution that remains manageable for you.
Payment Holidays
If you're struggling to keep up with repayments but anticipate that you will be able to get back on track soon, a payment holiday may be a possibility. Your Insolvency Practitioner can request this from your creditors, and if accepted, your monthly payments will be paused until you are ready to resume them.
Increased Contributions
If your circumstances improve, you might be asked to adjust your contributions. This could involve making a lump-sum payment to settle the IVA early, or your monthly payments may increase to reflect your improved financial situation.
In any of these situations, your Insolvency Practitioner will negotiate with your creditors on your behalf to seek modifications to the IVA.
If your creditors do not agree to change the terms of your IVA, it may result in the IVA "failing."
Is It Possible for an IVA to Fail?
An Individual Voluntary Arrangement (IVA) can fail for several reasons, primarily if you do not adhere to the agreed terms. Every 12 months, your financial situation is reviewed to ensure you can still afford the payments. If significant changes occur and are not reported, the IVA may fail, and creditors could withdraw from the agreement. Depending on the severity of the unreported changes, your creditors or Insolvency Practitioner may apply for bankruptcy. Breaching the terms of the IVA, such as not making agreed payments or not reporting changes in your circumstances, can lead to its failure.
An IVA can fail for several reasons, including:
- Not keeping up with your monthly repayments
- Borrowing more than £500 without informing your Insolvency Practitioner.
- Failing to cooperate with your Insolvency Practitioner throughout the duration of the IVA.
If your circumstances change and you have informed your Insolvency Practitioner, they will reach out to your creditors to discuss potential modifications to the IVA.
Ultimately, it is up to your creditors to approve or deny these changes. If they refuse, the IVA may fail. However, such rejections are relatively uncommon, as creditors typically do not reject modification requests without valid reasons.
Change of Circumstances
Once your IVA is approved, it will be governed by the terms agreed upon by you and your creditors.
During the five-year duration of your IVA, your personal circumstances may change. While these changes won’t automatically void your IVA, it is crucial to inform your insolvency practitioner of any adjustments as soon as possible.
Some changes in circumstances might be:
IVA Pros and Cons
With RMS Financial, our consultations are free Whilst determining what solutions you might qualify for. As a debt solution. IVAS involve fees that are only applicable once your plan goes ahead. which are always included in your monthly payment. You can read all about them below.
IVA Pros and Cons
With RMS Financial, our consultations are free Whilst determining what solutions you might qualify for. As a debt solution. IVAS involve fees that are only applicable once your plan goes ahead. which are always included in your monthly payment. You can read all about them below.
IVA Pros and Cons
With RMS Financial, our consultations are free Whilst determining what solutions you might qualify for. As a debt solution. IVAS involve fees that are only applicable once your plan goes ahead. which are always included in your monthly payment. You can read all about them below.
IVA Pros and Cons
When considering an IVA, it is crucial to weigh both the positive and negative aspects before making a commitment. A thorough understanding of all facets of your situation will empower you to make informed decisions with confidence.
IVA Costs and Fees
At RMS Financials, we offer free consultations to help you explore the solutions you may qualify for. While IVAs are a debt solution that involves fees, these fees only apply once your plan is approved and are incorporated into your monthly payments. You can find more details about them below.
Managing debt can be challenging, but we've simplified it into three straightforward steps.
1
Consult with a debt expert
Our knowledgeable and approachable team will guide you through the IVA process.
Discover your choices
We won’t rush you into a decision. Our aim is to help you determine if an IVA is the right fit for you.
2
Determine Your Debt Solution
Choose the option that best suits your needs and way of life.
3
RMS Financial assists over 3,000 individuals in the UK each year.
Our team of specialists helps thousands of families regain control of their finances through an IVA.
Is an IVA the right choice for you?
We can evaluate your eligibility for an IVA.
Would you rather discuss this later?
We are here to provide support in helping you find a solution.
