New rules on credit card debt: what do they mean for me?
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You can start an IVA at any age after 18 years old, but your age and other circumstances could be a factor if you're wondering whether it's the best option for you.
An IVA is one of several debt solutions - it can help people to deal with debts that have got out of hand. It can be a worrying time when you're struggling with debt, and it can feel like one step forwards, two steps back.
An IVA gives you a goal to work towards - usually five years away - and a chance to deal with your debts once and for all.
You cannot get an IVA until you are at least 18 years old in the UK. Credit laws in the UK protect minors from being able to get into debt problems before they are 18 years old.
There's no upper age limit on when you can apply for an IVA: people of any age can get into debt problems. However, your creditors would have to vote on whether they think an IVA would be the best option before it could go ahead.
So if you were about to retire in the near future, they'd certainly take a good look at the impact this would have on your finances. If retirement would mean you can't afford your monthly payments anymore, your IP (Insolvency Practitioner) wouldn't recommend an IVA to you in the first place.
If you're considering an IVA, there are other things to think about besides your age, such as:
· Do you have a lot of unsecured debt that you cannot afford to repay within a reasonable amount of time?
· After covering your essential expenditure (home heating, eating, water, Council Tax and other essential living expenses) do you still have a reasonable bit of money left over that could go to your creditors?
· Would you agree to pay as much as you can afford every month?
· Would you be able to make those payments for five to six years?
· If you're a homeowner, could you agree to release any available equity in your home? If you can't, your IVA could be extended to six years instead of five.
· Are you are not already involved in any other insolvency proceeding (either now or during the last six years)?
· Are you are a resident of England, Wales or Northern Ireland?
If you answered yes to these questions, then an IVA could be the best way for you to deal with your debts. Just be aware that it'll have an impact on your credit rating for six years.
Speak to one of our debt advisers about your situation to see how we could help.
by Shelley BowersBack to blog home