Plan for Progress  

How do I get an IVA?

An IVA is an Individual Voluntary Arrangement. Well to get one, you first need to meet all the requirements so we’ll start there.

You must have debt from the United Kingdom and it has to be in pounds – not some foreign currency. The second is that you must be a resident of England, Northern Ireland, or Wales. Scottish citizens can’t get an IVA but they can apply for a Protected Trust Deed, which is quite similar in many ways. You must also be insolvent – meaning that you are having a very hard time paying back your debt or the other option: that your debts are more than the total of the equity in your home.

Another requirement is that you need to have debts over £15000+. If you have smaller debts you can look at other solutions such as simple budgeting or debt consolidation plans etc. Finally, you must be able to afford at least £200/ month to pay back your debts. It’s best to speak with an IP first though – they will set you straight. 

What are you allowed on the IVA budget?

After you have entered into an IVA you will notice that you have to make some changes to your lifestyle. No more wild spending. No more credit cards. It’s time to look at money in a different light and this could be a great learning process for you. The most important part of this process is to stay on budget.