IVA Criteria

Here we outline the IVA criteria and elements that contribute to a successful IVA proposal.

Important: Fulfilling these criteria does not necessarily guarantee acceptance.
Please remember these are minimum threshold values – what you actually pay depends on how much you can afford.

IVA Qualification depends upon your unique financial situation. Get in touch with us today for a definite answer as to whether you qualify.

Debt Levels And Number Of Creditors

Applicants generally need to owe no less than £5,000 (minimum three lines of credit from two or more creditors), and be able to afford at least typically £70 per month towards their debts.
The values are not set in law and will vary with different IVA providers.

Applicant Must Normally Be Insolvent

This means the inability to repay debts as they fall due, and these debts total more than the applicant’s available assets. An IVA is not possible should personal wealth, such as property or other assets, be worth significantly more than the debts.

If this was the case – creditors could reject the proposal and pursue bankruptcy instead; as those assets could be sold by force to raise money to pay towards the debts.

IVA’s With More Equity Than Debt
In the current economic climate it’s often difficult to sell a home and difficult to get a mortgage or secured loan, especially if you already have bad credit. Therefore we are able to consider cases where the equity exceeds debt and determine if an IVA is the best solution for all parties.

Residency Of Applicant

Applicants must be a resident in England, Wales or Northern Ireland. IVAs are not available in Scotland.

No Worse Than Bankruptcy For Creditors

The IVA must offer a higher return to creditors than would be expected if the applicant were made bankrupt.

IVA Payments Must Be Affordable

Creditors need to be confident that the applicant can keep up the IVA payments for the length of the agreement. While future events can’t be known, it is essential from the offset that the applicant can demonstrate:

• A reasonably stable ongoing income.
• Affordability of domestic needs without living in poverty.
• They are not spending excessively and are living within reasonable means.

Recent periods of unemployment, working through a probationary period or self-employment without proper accounts are factors which can prejudice an IVA application.

Demonstrable Proof Of Circumstances

An honest declaration of assets and anticipated future earnings should be made. Material irregularities or false declarations are likely to result in the failure of an IVA. Indeed, obtaining an IVA using false information is a criminal offence. An IVA proposal is a legal document so the applicant must provide suitable evidence to support the proposal such as:

• Recent bank statement to confirm current payments – last 3 months.
• Latest statements for all unsecured credit such as credit cards, store cards, catalogues, etc.
• Mortgage statement or tenancy agreement.
• Recent wage slips – last 3 months.
• Current council tax bill, including details of arrears if applicable.
• Proof of identification.
• Award letters for State Benefits currently being received.
• Hire purchase and secured loan documentation.

The only way to truly know if you qualify for an IVA is to get professional advice, so please contact us for full information as to your suitability.