Finding out if you qualify for an IVA means understanding the criteria. It means seeing if your situation fits the required qualifications. When you apply for an IVA an Insolvency Practitioner (IP) will check your state of affairs and see if they match the criteria for an IVA. This will then help to see if an IVA is right for you.
What is in the IVA criteria check?
When your Insolvency Practitioner is checking your application they will ensure that you meet the following criteria:
- You have a minimum debt level of £5,000.
- You have at least 2 creditors
- You have a regular income
- You’re able to pay at least £70 a month into the IVA
- You have to reside in England, Wales or Northern Ireland
- Your IVA should offer your creditors a higher return than bankruptcy would
While there is no official minimum debt level for an IVA, many Insolvency Practitioner’s typically work with debts of over £5,000. But you may find that your IP may still be willing to work with you on an IVA if your debt level falls below £5,000 depending on the amount of work that is involved.
What else do I need to apply for an IVA?
As an IVA is a legally binding debt solution, it’s important that your IP can be certain you’ll be able to keep up paying your monthly repayments, otherwise your IVA will fail. Because of this, you don’t necessarily need to be working to have an IVA, but you definitely need to have a regular income. This could come from:
- Full or part time employment
- Regular contributions from a third party
It doesn’t matter where your income comes from, as long as you can prove that you will be able to make monthly contributions of at least £70. When you’re ready to apply for your IVA you will need the following to prove that you are able to apply:
- Your bank statements from the last 3 months
- Payslips from the last 3 months (if applicable)
- Proof of your identity
From here a credit check will help to confirm your debts and will allow your IP to check for any debts that might be missing and need to be confirmed.
Check if you’re eligible for an IVA
Checking if you are able to apply for an IVA has never been easier. Simply fill out our application form here and you’ll be able to find out in minutes whether your application has been accepted. You’ll be put in touch with one of our agents who will help you to arrange your finances and will help you with taking the first step on the road to beoming debt free!