An IVA can help people with debt over £14,000.
If you are experiencing debt problems and have debts totalling over £14,000 an IVA could help you. An IVA is particularly helpful for those who own property which they would risk losing if they were to be made bankrupt.
An IVA might benefit you if:
You may be in a profession where you could lose your job if you go bankrupt such as accountancy/police/armed forces.
You may have access to a large lump sum and want a formal arrangement with your creditors to accept the lump sum and write off the rest of the debts.
You will not automatically lose your house or other assets which can be kept out of the IVA with the agreement of the Insolvency Practitioner and your creditors.
An IVA will only directly deal with unsecured debts, It cannot help directly with priority debts (such as your mortgage, council tax or bill arrears), although - because payments to your IVA would be calculated to fit around these expenses - the IVA will still help you keep up with them.
The Insolvency Service has issued a publication ‘In debt? Dealing with your creditors’ which has been produced to help consumers by providing a source of reliable and impartial information. It is aimed at helping consumers to understand the range of debt remedy solutions available.
Click on the following link which will take you to the insolvency website where you can download or read the guide 'In Debt? – Dealing with Your Creditors' - http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/indebt-web.pdf