Who Is Eligible For an IVA?
IVA eligibility depends on your personal and financial circumstances. In general terms, your personal debts should be over £15,000 and spread among 3 or more different creditors. You must be in a position to make reasonable monthly payments to your creditors. The level of your monthly contribution will depend on the amount of your debt and the surplus income available to you. You will usually need to be able to afford at least £250 a month.

1. You need to be a resident in England, Wales or Northern Ireland
   IVAs are not available to those living in Scotland or outside of the UK. If you are resident in Scotland, the equivalent of an IVA is known as a Standard Trust Deed.
2. You need to be insolvent
   you will be in a position where you are unable to maintain the payments required to service your debts such as credit cards and loans.
   You will need to provide proof of your financial circumstances, such as copy payslips, recent statements/bills from your creditors, a valuation of your property (if applicable).
3. You need to have unsecured debts of £15,000 or more
   Your debts will total more than £15,000 on credit cards, store cards, loans, overdraft or hire purchase agreements.
4. Need to have stable income
   IVAs are suitable for people who have over borrowed, stretching themselves financially, and can no longer maintain their repayments, but have an income which will allow them to continue making more manageable payments to eventually free themselves from their debt problem.
   In order to maintain your monthly payments due under the IVA agreement, you will need to be in employment and have a stable monthly income.
   Which Debts Can Be Included?
   Normally any unsecured debts can be included within an IVA. The following are examples of unsecured debts normally included as part of an IVA agreement:
   • Business loans for which you are personally liable
   • Catalogues
   • Credit cards
   • Outstanding balances after repossession of your home or vehicle
   • Overdrafts
   • Personal loans
   • Store cards
   Personal debts due to the HM Revenue & Customs can be included.
   
   Which Debts Can’t Be Included?
   Some debts cannot be included within an IVA. Secured debts, such as a vehicle HP or Mortgage arrears are excluded from the scope of an IVA. Other debts such as rent and fines (such as parking offences) will normally have to be paid, but provision for the repayment of these debts will be taken into consideration when calculating your monthly disposable income.