IVAs 'suitable for certain people with large debt'

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IVAs 'suitable for certain people with large debt'

Tue 27th Apr 2010

An Individual Voluntary Agreement (IVA) tends to be suited to people who have a large amount of debt, but also a significant income, according to a financial charity spokesperson.

Chris Tapp, director of Credit Action, highlighted how an IVA would not be an option for the poorer members of society, since it is aimed at people who "have some means but got themselves into a difficult situation".

He explained that people can potentially qualify for such a financial product if they have more than £15,000 of debt, but they need someone or some money to pay off a reasonable amount of debt.

"We are talking about people who generally have or have had a reasonable level of income, which is why they have been able to borrow so much," remarked Mr Tapp.

While he stated that putting through an IVA application is a fairly simple process, he stressed that insolvency is never an easy situation to deal with.

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