Income levels could be a reason for avoiding an IVA. As already mentioned, it is possible to have too little or too much income. Too little income may mean that a minimum IVA payment level is simply unsustainable. There is no point committing to a plan that puts an unrealistic demand on out finances. The plan must be workable. And it’s possible to have too much income for an IVA to be the answer. For some it’s simply a question of adjusting spending habits to afford debt repayment levels. For others, the financial problem is relatively short term, and the presenting issue is more about cash flow than a long term problem. In such circumstances other debt solutions (e.g. arrangement with creditors direct or a Debt Management Plan may be much more appropriate. If we know that our circumstances are likely to change this too will affect whether an IVA is the right answer. If we know that promotion and a higher salary is likely or if we believe we may inherit a sum of money within the timespan of an IVA, then again, other options may be more appropriate. 

Our expenditure may be another reason that an IVA may not or will not be the right answer. We are all different in terms of spending habits, but creditors will expect a debtor in an IVA to make some sacrifices. It may be that we could downsize our car to pay off some of the debt and avoid holidays for a period in order to re-gain control of our finances.  Creditors are unlikely to look kindly on family debt taking priority and thus will be reluctant to accept an IVA with such expenditures that reduce the payment level available for the commercial creditors. 

Someone with considerable assets may find that an IVA is not in their interests. Homeowners with considerable equity may find that creditors are reluctant to write off debt when the debtor is sitting on asset worth a considerable amount of money. A second (or third) car or a caravan may be regarded as a luxury that is inappropriate under such circumstances. Similarly if we own more than one property we may be required to sell something to help towards the debt.

Considering an IVA could be a knee jerk reaction to a problem that could have a simpler and quicker solution. As already mentioned, some jobs (especially in the finance sector) may be at risk if an IVA is undertaken. What is essential is that the debtor receives impartial advice regarding all debt solutions and is fully aware of the implications of each one.