What situations would prevent me from doing an IVA?

An IVA must be viable and offer a better deal to your creditors

We receive a lot of calls and emails from the public asking; "What situations would prevent me from doing an IVA?".

Please note that an IVA must be viable and offer a better deal than would otherwise be offered under bank otherwise your personal situation would prevent doing an IVA. If the IVA offer is not better than bankruptcy this would prevent you from doing an IVA.

An Individual Voluntary Arrangement - IVA is a formal agreement between you and your creditors where you will come to an arrangement with people you owe money to, to make reduced payments towards the total amount of your debt in order to pay off a percentage of what you owe then generally after 5 years your debt is classed as settled.

The following situations would prevent a person from doing an IVA:-

When bankruptcy would create a higher realisation of assets. This basically means creditors would get paid more money under bankruptcy
When bankruptcy would create a quicker realisation of assets. This basically means creditors would get paid in less time that offer under an IVA proposal.
Where the minimum IVA requirement are not met. This would be factors such as: debts under £15,000, money owed to under 3 separate creditors.
If the persons income was all state benefit orientated this would prevent an IVA taking place.
Where there are creditors whom automatically vote against IVA proposals of their debts amount to over 20% of the total debt.
If the person was proposing an IVA was self employed but the business was not viable or profitable.
If the creditors would prefer a debt management plan or bankruptcy.
If your job or profession prohibits an IVA taking place.
If your income was so high that it as decided that the actual contractual payments could be made without the need for an IVA.

If you are unsure what situations would prevent you from doing an IVA please complete the following form or telephone 0800 074 6918.

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IVA's

The IVA Guide
Money Advice Direct has put together an IVA Guide based on the enquiries and questions that we receive at our helpline offices.

In the guide we cover such subjects as IVA Approval, early settlment of your IVA, missed IVA payments, IVA failure, additional debt claims and much more.
[click here for IVA Guide]

What is an IVA?
The IVA is an extremely powerful tool enabling you to clear your debt and return to a clean financial bill of health. Visit Money Advice Direct's Guide to Individual Voluntary Arrangements (IVAs).
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What situations would prevent me from doing an IVA?

An IVA must be viable and offer a better deal to your creditors

The following situations would prevent a person from doing an IVA:-

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