Debtline Direct

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Struggling financially? You're not alone! Debtline Direct can help you get your finances back under control and become... DEBT-FREE!

Is an IVA (Individual Voluntary Arrangement) right for you?

If you’re struggling to meet all your monthly debt repayments, an IVA may be right for you. In order to qualify, you must:

  • Owe at least at least £15,000 of unsecured debt to at least 3 different creditors
  • Be able to make significant monthly contributions into the IVA, for a fixed period of 60 months
  • Have a regular income, that is not solely benefits-based

With an IVA you will:

  • Have part of your debt written off and pay what you can afford
  • Have interest and charges frozen or stopped
  • Have all letters and phone calls stopped from your creditors
  • Have a single monthly payment

Your questions about IVAs answered

Q. How long will I have to pay on an IVA?A. An IVA will typically run for 60 months (5 years). However, if you have any equity in your home, this may be extended. Q. Who can apply for an IVA? A. People who owe over £15,000 of unsecured debts, to three or more creditors may be eligible. However, you have to pay back a minimum amount into the IVA, so people with a low monthly disposable income may not qualify. If you could afford at lead £200 per month, you may qualify.Q. How is an IVA set up? A. An IVA has to be proposed by someone called an Insolvency Practioner (I.P), who is basically an accountant. An IVA proposal is then made to all of your creditors. If the majority of them agree to the proposal, the IVA will go ahead. Q. . How do you calculate what I pay? A. There is a minimum payment per month based on income and the level of debt. The payment must be affordable for an IVA to be accepted.

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