COVID-19: We have answered some of our customer's most frequently asked questions

IVA Calculator – How Much can You Write off?

An IVA is an agreement between you and your lenders to help get your finances back in control. One bonus of an IVA is that, once the arrangement is complete, any remaining debts are written off.

Standing for individual voluntary arrangement, an IVA is an attractive solution for many. One of those reasons is due to the write off element and applicants frequently ask us how much they won’t need to repay.

To help answer those queries, we’ve created our IVA calculator – it estimates how much debt you’ll write off once this arrangement has been completed.

How do I use the IVA calculator?

Using the IVA calculator is simple. On the left, you’ll see a slider for your debt amount. Just adjust this until the figure represents an approximation of how much you owe. On the right, you’ll see how much you might have to repay as well as an estimated figure for how much you’ll write off. The results are based on how much we’ve already written off for our clients so these calculations are not just guesswork!

Your Debt Amount

Total Debt Payable

£14,523

Debt Write Off

£33,887

*This calculator is an approximation of the debts you can write off and is based on the average amount we have managed to clear for our customers.

How does the calculator work?

The IVA calculator is an approximation and is based on the average amount our clients manage to write off. Although this figure differs based on everybody’s circumstances, we generally manage to write off – on average – around £13,500 worth of debt per customer.

Want to make debt write-off a reality?

It’s all very well seeing this on your screen, but if you want to make it a reality get in touch today. It costs nothing to find out if an IVA is right for you and we could give you a more concrete answer on how much money you might be able to write off.

What is an IVA?

We’ve detailed just about everything you’d want to know on our page; What is an IVA. In essence though, an IVA is a financial solution which can be very effective in resolving considerable debts.

A generally preferred alternative to bankruptcy, it’s an agreement between you and your creditors to repay what you can through affordable monthly payments. During this time, interest rates and charges are frozen which help make your debts much more manageable. When the IVA ends, any remaining funds you still owe your creditors are written off.

Will an IVA write off all my debts?

Although some companies may suggest an IVA can completely write off what you owe, this is not true. There is no debt solution which can completely clear your debts without serious consequences. With an IVA though, you should at least write off substantial amounts.

Do I qualify for an IVA?

This debt solution isn’t available to everyone and those interested should meet the following IVA qualifying criteria:

  • You have debts of at least £6,000 – Although this figure isn’t set in stone, an IVA isn’t available to those who only owe small sums.
  • You have a regular income – As payments must be made, only those with a regular sustainable income should apply. This could be through employment or benefits.
  • You have more than one creditor – Generally, IVAs are only available to those who owe money to multiple parties.
  • The IVA is better than bankruptcy – Your creditors must approve the IVA and, therefore, they should see they are getting more money from the arrangement rather than the alternative.
  • You aren’t based in Scotland – IVAs are not available in Scotland. However, something very similar exists there called a Trust Deed.

Are there alternatives?

Whether or not you meet the qualifying terms for an IVA, there are a variety of things to consider. Although one of the main advantages of an IVA is typically its ability to write off debt, there may be other debt solutions available. They are all different and one might be better suited to your circumstances. To find out more information, get in touch with us today.

We’d be happy to discuss your circumstances and identify the best solution for your needs.

Recent posts

Reclaim Your Financial Freedom

Get debt help → View More Blogs