An IVA may sound like a good solution to you, but it might not be the best way to solve your actual debt. Because its not suitable for everyone’s debt, there is criteria you must meet first.

IVA Eligibility Checklist:

• My debt is over £15,000.
• My debt is owed to three or more different creditors.
• I have figured out a sensible, realistic budget I will be able to stick to in order to make my payments, allowing enough to pay for everyday basic needs, bills and general living costs.
• I am in regular employment with a steady income.

If you answered no to any of these criteria, an IVA might not be the best solution for you. The only way to find out is to talk to a debt advisor.

It’s crucial your budget is realistic, as not having enough to make your IVA payment has harsh penalties and could see you becoming bankrupt.

If you are not in steady employment, this makes you more risky as an IVA candidate and could lead to a failed IVA. During the five years it may take you complete an IVA, it is understandable that your employment situation may change. If so, there is room for negotiation in an IVA and your creditors may agree for you to alter your payments should your situation change.

If you don’t meet the criteria above, investigate the other debt options that are available too, as you may be better suited to another debt solution, such as a debt management plan. There is no one-size-fits-all debt solution. It’s vital you head toward the best possible way to resolve your debt.

Want to know if an IVA is suitable for you? Consult with a debt advisor first.