You've probably read and heard about using IVAs as a debt solution, but how do you know if it's the best solution for your situation? Whether an IVA will work for you or not depends on your circumstances, because it is an agreement that's specifically designed for people with serious debt problems – not for those who are looking for an easy way out of debt.

Beat the stress and strain of real debt

For the purposes of an Individual Voluntary Agreement, you must have significant debts that you cannot pay. This means that you are, or will be insolvent, with no income to cover your debts. The usual recovery from insolvency is bankruptcy, but this is a severe legal process and can blight your credit record for many years, as well as stopping you from holding certain jobs or community positions. An IVA is a real alternative to bankruptcy, but it is specifically for those who:

• Have large debts – if you owe a few hundred or even a few thousand pounds on your mortgage or credit card, don't consider an IVA. Your creditors simple won't accept an IVA for debts at this level. You need to be several tens of thousands in debt in order for an IVA to be of use to you.

• Have no way of paying your debts – if you have a large income, you may be able to sustain large debts. A moderate or low income, however, means that you simply don't have the spare cash to make the payments each month, particularly when high interest rates are being applied and your debt is growing constantly. If you can't pay your debts at all, you are insolvent, and this is when an IVA is worth considering.

• Have a regular income – even if you can't pay your debts with the money that's coming in, you can look at proposing an Individual Voluntary Arrangement to your creditors if you have a regular income at a reasonable level. This is because your creditors can see that there is a guaranteed income coming into your household, and that you would be able to make a smaller monthly payment if an IVA were put in place. If you are self-employed or on benefits, your creditors may be less likely to consider accepting an IVA proposal.

Varden Nuttall has been established for over 15 years and is dedicated to helping people in financial difficulty find an insolvency solution through an Individual Voluntary Arrangement (IVA). Employing 90 people, including trained and skilled IVA administrators, we are one of the largest IVA companies in the UK and handle over 3% of all IVA applications. To find out more about the company, or to make an appointment to talk about putting an IVA in place, call us today on 0800 031 9802 or fill in our online enquiry form.