Overview
Individual Voluntary Agreements are a great way of dealing with personal debt. They are a reasonable and effective mode of solving debt issues. Nonetheless, to even qualify for the Individual Voluntary Agreements, there are some prerequisite qualifications that are necessary. Even if you do qualify to have an IVA, there is a chance that this debt solution is unsuitable for you. Before proceeding with any processes related to getting an IVA, you should consult an insolvency expert to give you the right IVA advice by visiting this site.
Eligibility
How do you know if you are eligible for the Individual Voluntary Agreement? First you must have at least more than one debt and therefore more than one creditor. A creditor or lender is an individual or entity who loan you funds and to whom the debt is due. You must therefore have at least two lenders such as the government for income tax and a bank for credit card debt in order to qualify for an IVA. The debts must also be unsecured and fall into certain categories that are acceptable. For example, rent debt cannot be solved through an IVA. Your debt must also add up to a significant amount of either $5000 or £10000. These are the most basic prerequisites to have an IVA. If you also have the ability to afford a small payment every month aside from the normal costs of living, then you may be eligible for this type of debt intervention.
Suitability
Aside from being eligible, you should also find out if you are suitable for the debt solution. You are suitable if you do not want to handle your financiers directly. An IVA helps you solve your debt problems without having any contact with creditors aside from the written communication from your insolvency practitioner. You are also suitable for an IVA if your work does not require you to quit your job if you get one. There are some jobs such as solicitors and accountants which have contracts that require the individual to stop practicing their craft if they are in such significant debt. The IVA may also be unsuitable for you if you have inconsistent work or are unable to get a regular income per month. This is essential as an Individual Voluntary Agreement has legal implications so that if you breach it, you can face more serious consequences. The IVA is also suitable for you if you have assets that you are not willing to relinquish to your lenders. Assets can include your home, car or even your business.
Conclusion
Determining whether or not the Individual Voluntary Agreement is the solution for your debts is ultimately up to you. However, these few guidelines will help you figure out whether or not you ar eligible for and suited to using an IVA.