Is there such as thing as a couples IVA?

The world of individual voluntary arrangements (IVAS) may seem to be a confusing one. What are they? How do you take one out? Do they have to be taken out individually or may a couple take out a couples IVA?

These are just a few of the numerous questions that may spring to mind when considering this type of financial help.

Debt help for couples

In relation to the setting up of a couples IVA the answer to that question is typically “yes”. Individuals are able to take one out on their own merit while if couples have built up unsecured debts or one of the couples has, then they may apply for what is typically referred to as a joint individual voluntary arrangement, together. However, when applying for this type of debt help there are criteria that typically needs meeting. Typically this is:

• owing more than £15,000 by way of unsecured debts;
• owing money to at least two different creditors;
• have the ability to be able to offer your creditors at least a minimum amount on a monthly basis;
• have a partner, wife or husband that you share the debts with.

Couples may also wish to consider the fact that an individual voluntary arrangement, even when taken out jointly, may only be taken out to cover any debts that are classed as unsecured. Therefore typically if you are considering entering into an arrangement for such as credit card and unsecured loan debts, you cannot add a mortgage into the arrangement. A mortgage is typically classed as a secured loan.

It may also be worth noting that a couples IVA is typically two individual applications that are made at the same time and which are dependent on each other. A joint IVA application may be looked on more favourably by creditors as it shows that there are two of you paying back the debt.