If you’ve ever browsed online for details about Individual Voluntary Arrangements, you’ve probably come across any number of companies offering an ‘online IVA calculator’.
How do online IVA calculators work?
Very often, these ‘calculators’ are little more than a clever attempt to capture your contact details, so the company can phone or email you to offer their services. So beware of entering your personal details unless you want them to contact you.
We wanted to create a different IVA calculator that actually shows you how an IVA works and how much of your debt could be written off. We don’t capture any details, you simply move the slider to enter your total debt amount and the calculator will show you how much debt you could get written off and how much you will have to pay back.
To make our calculator as representative as possible, we based our calculations on the average debt write off percentage for our associated company PayPlan Partnership. We wanted to base our calculator on real figures so you could get a true idea of how an IVA could help you.
What’s the alternative to an online IVA calculator?
If you’re looking for an online IVA calculator, what you probably want to know is the answer to this question:
“Do I qualify for an Individual Voluntary Arrangement (IVA)?”
Whilst our calculator can give you a rough idea of how much debt you could have written off, the simple fact is that just by entering a few details online, it is virtually impossible to tell whether you will actually be able to be approved for an IVA. This is because you’ll need to go through a full assessment of your income and outgoings, and use the services of an Insolvency Practitioner to draw up a detailed IVA proposal to put to your creditors. Your IVA will only be approved if 75% (in monetary terms) of your unsecured creditors accept your proposal.
Do I qualify for an Individual Voluntary Arrangement?
Whilst the decision to approve or reject an IVA application ultimately rests with your creditors – because they get to vote on whether to accept your proposal or not – there are a few key things that you normally need in order to consider applying for an IVA.
If you can answer ‘Yes’ to all the following questions, you may qualify to apply for an IVA:
- I can’t repay my unsecured debts in full within a reasonable amount of time
- My total unsecured debts are around £7,000 or more
- I owe money to two or more unsecured creditors
- I have a monthly available surplus of £50 or more to put towards repaying my unsecured debts
Is an IVA the right debt solution for me?
Just because you may seem to fit the basic criteria needed to apply for an IVA, it doesn’t mean that this will necessarily be the right debt solution for you.
Before you commit to an IVA, you should be aware that if your IVA is approved and you fail to keep to your agreed payments, your creditors may petition for your bankruptcy. They may also re-apply interest and charges. Only those unsecured debts included in your IVA may be discharged when it ends – any excluded debts will still remain outstanding.
During your IVA, there will be restrictions on your expenditure, and if you are a homeowner you may need to release equity from your home to pay off your debts. If a re-mortgage is necessary, this may be at a higher interest rate than you are currently paying. If you cannot re-mortgage, your IVA may be extended for a further 12 months.
By embarking on an IVA, your details will be entered into a public register, and your credit rating could be adversely affected.
That’s why it’s important to consider all available debt solutions before deciding on which route to take.
Struggling with debts? Contact us today!
If you’re struggling with debts and considering an IVA, contact us to find out about a wide range of practical debt solutions that help people deal with their debts and get on with living their life.
The best way to find out what makes us different is to call us free on 0800 280 2816 and have a chat with one of our fully trained advisors. They’ll listen to you and talk about you, your life, your debt and your aspirations. You’ll find them understanding of your situation and helpful in your search for a solution that’s right for you.
Call us today on 0800 280 2816 for confidential, no obligation debt help and advice. Or you can complete and submit our online Debt Help form and we’ll call you back