You are at : aph home : cheap loans : how to get an IVA
 |
The IVA: Do You Qualify?
The Individual Voluntary Agreement, commonly known as the IVA, is extremely popular these days because it allows those individuals that can no longer afford their own level of debt to get out of financial difficulty without having to declare bankruptcy. |
The IVA was set up solely for this purpose because individuals within society were beginning to struggle more and more with the average debts and too many people were beginning to declare themselves bankrupt. However, last year 46,000 people were granted an IVA, with only 62,000 declaring bankruptcy so the IVA is beginning to be recognised as a better alternative.
There is one catch with the IVA – if you do not fit squarely into the qualification guidelines then the likelihood is that your proposal will not be approved. At least 75% of creditors have to approve your proposal in order for an IVA to come into being, but if you do not make the qualification criteria then you will be turned down because the banks lose money on every IVA as a certain percentage of the debt is written off. For example, if a lender believes that you can afford to pay back more than you are offering or notices that you may not fit into the criteria then there will automatically be a question mark over your eligibility.
To be certain about qualifying for an IVA, you have to fit within the following criteria:
- Your annual salary should be less than the total amount of debt that you are in
- Your debts should exceed £15,000
- You must no longer be able to afford to make monthly repayments
- You must have debts with more than one provider
- Your debt must be unsecured as an IVA is unable to cover secured debt
If all of the above sounds familiar and you can answer yes to all of the above statements then you qualify for an IVA. If, however, you can only answer yes to a few of them then you should advice from an IVA professional before proposing an IVA solution to your creditors to assess your eligibility
Visit www.aph.org.uk for an Individual Voluntary Arrangement or IVA Application. | 
