Do I qualify for IVA in London?

There are always chances of running into financial difficulties in a business or in personal life for anyone living in London. Sometimes people do not realize the extent of their debt until they are too deep into it.
Then there is always possibility of facing legal actions from some of the tough creditors who are not ready to give you further leniency.

If you are facing financial difficulties in your business in London, there are even more problems as you will need to take care of many more things before declaring bankruptcy.

Bankruptcy was sought to be the popular choice in such situations but there are certain problems associated with bankruptcy and it is always better to explore other debt solution options like an IVA.

There are certain criteria that you need to fulfill for you to be eligible for IVA in London. IVA was initially introduced to help small businesses struggling with debts but it was later modified to include help for individuals as well.

IVA is Individual Voluntary Arrangement, which is basically an agreement between the debtor and their creditors. It is usually executed by an Insolvency Practitioner who lays out a plan for the debtor to make the repayments in regular intervals over a period of 5 years.

As this is a formal and legal agreement approved by the UK government and the legal system, it is mandatory that this agreement should made by a licensed Insolvency Practitioner. There are many IVA firms in London offering this service and to see if you qualify for IVA in London, it is best to approach one of these firms.
There are also many Helpline numbers where you can call and get advice on setting up IVA and or to check if you qualify for an IVA in London.

The criteria are qualifying for an IVA is usually the same for all the cities in the UK including London. One of the main criteria is that your debt should be over £15000. Another criterion is that you should be owing money to at least three different creditors.
Also you should have at least £200 as disposable income to contribute to the arrangement and some assets or a third party also to contribute to your IVA.

You should have a steady monthly income and if you are in a business where your monthly income varies significantly you need to make sure that there is at least a certain minimum amount you get regularly to start an IVA. The reason for the failure of most of the IVA is because of the failure of a steady income.

IVA is always considered a reasonable option in London as there is possibility of protecting your home or property unlike other debt management plans like bankruptcy. It is a well laid plan to bring you out of your debt in a period of just 5 years.

If you meet the criteria to be eligible for an IVA, the next step is to find and Insolvency Practitioner who is licensed and you feel comfortable to work with. The Insolvency Practitioner (IP) will demand the necessary documents from you which include latest statements from all your creditors stating the amount you owe them including reference number or account number.

Next is your income statement for the latest three months. You also need to show them your mortgage papers and if you have any vehicle loan, you would need to submit those statements as well.

After your IP analyses all your financial papers, a proposal will be put forward with your IVA repayment plan which also covers for your living expenses.
A meeting will be convened in London of all the creditors by your IP and the plan will be discussed.

You do not need the approval of all your creditors to get it accepted but you need the approval of at least 75% of them. Once you get this approval, your IVA papers will be drawn and both the debtor and the creditors will sign it to seal the deal.
Your payments will resume and carry on till the debt is cleared as per the proposal or for a period of 5 years. Any remaining debt after a period of 5 years will be written off by your creditors.

Basically if you follow the IVA plan religiously without fail, you can be debt free after a term of 5 years. If there is any variation that happens for IVA due to a decrease of income for the debtor, the IVA plan will be re-evaluated and have to get it reapproved by the creditors. If the income increases during the course of IVA in London, you will be required to pay more to compensate the creditors as much as possible.

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