You are allowed to do an IVA if you live outside the UK. It could be an ideal solution for you if you are struggling to pay debt owed in the UK after you have moved abroad.
Included in this article:
- Can you do an IVA if you live outside the UK?
- How much will your payments be?
- What ways will an IVA affect you locally?
Want help to start an IVA?
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Are you allowed an IVA if you live outside the UK?
You can do an IVA if you used to live in England or Wales but are have now moved outside the UK. This applies wherever you now live (either inside or outside of the EU).
The Arrangement will allow you to reduce all your UK debt payments to a single affordable amount. The payment is based on your local income and expenses budgets.
To qualify, you should normally have moved outside the UK within the past 3 years. However, it may be possible to get an IVA even if you have been abroad for longer than this.
In addition, only your UK based debts can be included. This means you will still have to pay back any money you have borrowed from a local bank or financial institution where you live now.
Struggling to get your head round all of this? We can help. Call us (0800 011 4712) or complete the form at the bottom of this page. The advice is free and confidential.
How much will your payments be from outside the UK?
Your IVA payments will normally be based on your surplus income. In other word’s the amount left over from your income after all your monthly living expenses are budgeted for.
That said, you normally have to be able to afford a payment of at least £100/month to start an IVA.
If your income is not sufficient to cover this, your spouse or partner can make up the difference for you. This means it is possible for you to do an IVA when living outside the UK even if you have no income of your own.
Your payments will have to be made in pounds sterling. So, when you complete your living expenses budget, remember to add an amount to cover the cost of any currency exchange and bank transfer costs.
Your income and expenses figures need to be shown in pounds. This means all the amounts in your budgets have to converted from your local currency.
What ways will an IVA affect you locally?
A significant advantage of an IVA if you are now living outside the UK is that it will have a minimal affect on you where you live now.
First and foremost, your local credit rating remains unaffected. The IVA is recorded on your UK credit file. However it will not appear on your file where you are now living (even in Europe).
A significant advantage of this is you will be able to move to different rented property if you wish without having to worry about failing a credit check. In addition, you can still get access to local credit (although you should avoid this).
It is also highly unlikely that anyone will find out about your circumstances. No-one in your local country will be told. This means that neither your local bank, landlord or employer will be any the wiser. The fact that you have debt problems in the UK will remain private.
Living outside the UK and want to start an IVA? Call us (0800 011 4712) or complete the form at the bottom of this page. The advice is free and confidential.