IVA Qualification Requirements
It is safe to say that all IVAs are unique, but the basic IVA requirements that are set by the creditors remain the same. The ‘Straightforward Consumer IVA Protocol’ outlines the minimum requirements needed for an IVA and these requirements have been placed by the creditors to ensure that there are uniform standards for all IVA applications.
There are various kinds of debt solutions available. However, if you’re considering IVA as one, then you should make it a priority to meet these requirements; otherwise, the creditors can easily reject your application for an IVA.
photo/ The World Spectrum
How to know if I qualify for an IVA
There are various advantages offered by the Individual Voluntary Arrangement (IVA). It is one of the quickest ways you can use to get out of your debt. The best thing about the IVA Is that it ensures you’re only paying back the amount you can afford to creditors. This is why it is an extremely popular debt solution. However, to really take advantage of an IVA debt, there are some basic requirements that you must meet. The qualifying criteria for an IVA are flexible, and you should consider getting an IVA if you meet the following requirements:
- You’re struggling to pay back your creditors
- You’re living in England, Northern Ireland or Wales
- Your unsecured debts are more than £7,000. If your unsecured debts are less than that, you should think about other debt solution forms.
If you meet any of the conditions mentioned above, then you qualify for an Individual Voluntary Arrangement (IVA).
Minimum Entry IVA Requirements
The Individual Voluntary Arrangement (IVA) have different requirement standards, and the minimum requirements for an IVA include the following:
- Your unsecured debt should be around £10,000
- You owe more than 3 debts to 2 different creditors
- The income of the application shouldn’t be based on benefits alone
- All applicants must pay IVA payments based on the size of their debt and what they can afford
- The IVA application should choose to voluntarily enter an IVA instead of declaring bankruptcy.
These are the standard IVA requirements that are required for individuals to write off debt, but these requirements can be changed at any time.
Post Creditors Meeting Requirements
After the creditors have accepted the IVA proposed to them at the Creditor’s Meeting, there will be a new set of IVA requirements which will be based on the terms and conditions. These requirements would include the following:
- The financial circumstances of the applicant will be reviewed every year
- The IVA applicant should declare any extra income or financial windfalls they receive
- The applicants also need to notify their IP if there is a change in their address or in their employment
- Homeowners should explore the option of equity release if they have enough equity by the end of their 4th year.
If you fail to meet any of the above-mentioned requirements, it could terminate the IVA. This is why it is imperative that you meet all the IVA’s requirements.
Author: Uday Tank
