More than 9 million people in the United Kingdom have problems with overwhelming debt. Some of them are hard workers who fell upon difficult situations such as family crises, loss of employment, wage decreases and the like. Many products and services are available to help UK debtors escape the clutches of debt. An IVA or individual voluntary arrangement is an example of such a service. An IVA is an option for UK residents that qualify for it. An interested person would have to apply for IVA acceptance to participate in the program.


How Does an IVA Work?

An IVA is a contractual arrangement between a debtor and his or her creditors. The consumer agrees to pay the creditors back a certain amount of money for a certain length of time. Approximately 75 percent of the creditors have to agree on the terms of the IVA before it can become a legally binding document. IVA companies can help a debtor to take the initial steps in developing a proposal. First, the debtor will need to know whether he or she qualifies for the program at all. The program has certain guidelines that the person must consider before apply for an IVA Calculator online.


Who Qualifies for an IVA?

First, a debtor should have at least £15,000 in debt before attempting to apply for an IVA. However, the process has become lenient lately, and some debtors are entering IVA programs with £10,000 worth of debt. Secondly, the debtor must have enough money to repay the creditors. If the person does not have enough money to repay the creditors a substantial amount, then the person would most likely qualify for a bankruptcy. An IVA is only a good solution when the person has the means to take care of the debts.

Calculating one's disposable income will help that person to determine whether he or she would qualify for an IVA. The person could ask for IVA advice from a professional company, or the person could use a helpful calculator like the one that offers. The disposable income figure is the amount of money that the person has after he or she pays the monthly bills. The way that a person would calculate the figure is by subtracting total monthly expenses from total monthly income. The individual should have at least £200 a month of disposable income to contribute to the creditors. Otherwise, the creditors will not accept the proposal.

Asset ownership can disqualify a person from IVA approval. The courts may see that the person has a high-value asset and decide that he or she could simply sell the asset to pay the creditors. Examples of such assets are vehicles, houses, stocks and the like. One should still request IVA advice no matter what his or her situation is.


How to Decide

A wealth of IVA companies is available to help a consumer decide whether an IVA is the right process of debt recovery to choose. is an example of one website that offers IVA advice. Victors can apply for IVA help by completing a brief online form that requests some personal information and a small amount of income information. An IVA specialist will return contact very quickly so that the consumer can start the qualification process. Persons who do qualify for IVA help can possibly receive up to 70 percent off on their debt bills. Creditors may be willing to write off a large portion of the debt just to collect some of it.