Individual Voluntary Arrangement (IVA) calculator
IVA calculator
If you’re struggling with unsecured debt and you’re looking into debt solutions like Individual Voluntary Arrangements, you may be unsure how much your monthly payments would be, which makes it difficult to work out whether an IVA is a suitable debt solution for you.
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What is the IVA calculator?
An Individual Voluntary Arrangement is a debt solution that would allow you to repay what you owe through a series of monthly payments, and write off your unaffordable debts. First, though, you need to know whether you qualify for an IVA, and whether you can afford to maintain payments.
That’s where the Creditifx IVA calculator can help. First, it will look at your total unsecured debts and work out whether an IVA is the most suitable debt solution for you, or whether your debt amount means you would be better off exploring alternative insolvency solutions.
In addition, the IVA calculator will use the financial information you input to calculate roughly the level of monthly payment you would be looking at should you decide an IVA is the best solution for you, and whether you’re likely to have any remaining debt written off.
How does the IVA calculator work?
The IVA calculator works by taking details of your current financial situation, and using that data to work out whether you qualify for an IVA, as well as estimating the level of your monthly payment.
It’s a simple, 3-step process.
Step 1
Input your personal information (Name, address, contact details)
Step 2
Enter your financial details (Income including salary, pension, benefits, plus all monthly expenses)
Step 3
Add details of your debts (Total unsecured debts, credit information, each creditor you owe money to)
Once you’ve added all your information, just click ‘Check if you qualify’. The IVA calculator will then come back with the size of your affordable monthly payments and let you know whether you could be in line for a debt write off if you use an IVA.
What are the benefits of using an IVA calculator?
With so many debt solutions available for varying levels of debt, it can be difficult to know which one is best for you. The Creditfix IVA calculator gives you clarity.
Understand whether you qualify for an IVA or not.
Different insolvency solutions have different criteria you have to meet in order to qualify.
Using the IVA calculator will allow you to determine whether your total debt level and disposable income make you eligible for an Individual Insolvency Arrangement.
Calculate the size of your IVA monthly payments.
Given an IVA locks you into a debt solution for a fixed period of time - usually five or six years depending on whether you're able to release equity from your home - it's important to know how much your monthly payments will be. The IVA calculator takes your total debt plus your income, and calculates the level of repayment that's right for you.
Decide whether an IVA is the best debt solution for you.
There are a range of debt solutions available to people having money problems. Each has different pros and cons, and deciding which is the most suitable one for you depends on your circumstances. You can't come to an informed decision until you have all the information. That's where the IVA calculator comes in.
How will an IVA help me with my unsecured debts?
As long as you fit the basic criteria, an IVA consolidates all of your debt payments into one affordable amount, and allows you to repay your debt while protecting you from legal action from your creditors.
When applying for the debt solution you will take part in an income and expenditure check. This allows the insolvency practitioner (IP) who administers Individual Voluntary Arrangements to determine how much you are capable of paying each month on top of all of your combined expenses.
If 75% of the people and companies you owe money to agree to the proposal by your IP you’ll then begin paying one payment towards your debt each month. This can make monthly bills more manageable and you can repay the debts you owe over a fixed period, after which your remaining debts will be written off.
How will I know if I qualify for a debt solution like an IVA?
An IVA could be the right debt solution for you, however to be eligible you must meet the following criteria:
- Have £6,000 or more of unsecured debt
- Owe money to two or more creditors
- Live in England or Wales
- Have a steady income and consistently be able to make at payment of at least £85 per month
I qualify for an Individual Voluntary Arrangement - What do I do next?
At Creditfix, we understand how easy it is to let debt take over your life. It’s difficult to know what direction to take, and you may be left wondering whether an IVA is a good idea for you.
As one of the UK’s leading debt solutions businesses, our professional team have extensive experience finding the right debt solution for people from all walks of life – no matter what financial situation you’re in.
Our expert advisers are well-equipped to give you impartial service and provide free debt counselling. You need to make a decision that’s best for your situation. free debt advice and no upfront fees, contact us today – our phone number is 0800 043 1431.