Not everyone who applies for an Individual Voluntary Arrangement (IVA) will be accepted. An IVA is a legally binding agreement that allows you to reach an agreement with your creditors to pay off your debts over an extended period of time. It is typically overseen by an insolvency practitioner, who is responsible for assessing your financial situation and determining whether an IVA is a suitable option for you.
Here are a few reasons why an IVA application may be rejected:
- Insufficient income: If you do not have enough income to make the required payments towards your debts under an IVA, your application may be rejected.
- Unaffordable payments: If the monthly payments required under an IVA are deemed to be unaffordable based on your budget, the IVA may be rejected.
- Creditor objections: Your creditors may object to the terms of the IVA, which can result in the IVA being rejected.
- Non-compliance with the IVA: If you fail to make the required payments or do not adhere to the terms of the IVA, it may be terminated.
If your IVA application is rejected, you may need to consider other options for dealing with your debts, such as bankruptcy or a Debt Relief Order. It is a good idea to speak with a financial professional or an attorney for advice if you are unsure about your options.