Who can apply for an Individual Voluntary Arrangement?
Anyone can be considered for an individual voluntary arrangement to rectify their debt problems; their availability is not governed by profession.
Your eligibility for an individual voluntary arrangement will depend upon your personal circumstances; typically you will need to owe £15,000 or more to three or more creditors. You must also be able to afford a reasonable monthly repayment of at least £200.
Secured loans i.e. those, which are secured on your home, cannot be included in an individual voluntary arrangement but the following types of debts can.
- Unsecured Personal Bank loans
- Business loans which you are personally liable
- Student loans
- Overdrafts
- Balances after home or vehicle repossession
- Store cards
- Credit cards
- Home shopping catalogues
Personal debts to the Inland Revenue can also be included but will be treated preferentially under the arrangement.
Other debts such as rent arrears, council tax arrears and fines are not covered, neither are secured loans such as mortgages and vehicle loans under an individual voluntary arrangement (IVA).
