IVAs for Tenants
If you are a tenant and don't own a property, either in full or in part, then this is the type of IVA you will be applying for.
If you are a tenant but do own a property, even if it isn't the property you currently live in, then you will need to explore IVAs for homeowners.
Fortunately, setting up an IVA for a tenant is a relatively straightforward affair, because it doesn't suffer any of the complexities surrounding property ownership.
IVAs For Tenants And Lodgers
Typically, people falling into this category of IVA will be:
- Renting a house.
- Renting a flat.
- Renting a room.
- Lodging with family
- Lodging with friends
When assessing your IVA budget, priority will be given to your full household expenditure, ensuring that all your living costs, such as your rent, food and utility bills, are covered.
Importance is placed on non-essential costs, too, ensuring the less obvious but still important expenses are taken care of, to ensure your budget is resilient and more than just sustainable.
IVAs for tenants have a fixed term of 5 years.
This type of IVA benefits from the standard terms and conditions found with all other IVAs, including legal protection from creditors as well as the potential for a debt write-off.
Moving to a new rental property
Tenants are free to move home at anytime, should they need or want to, without much disturbance being caused to the IVA itself.
Obviously, due consideration will still need to be given to your budget and particular attention given to the costs that moving home will create.
Attention should be given to increases in expenditure, to ensure they don't render your IVA unaffordable.
Your credit rating and renting
One of the disadvantages of being in an IVA is that it damages your credit rating, which may make it more difficult to find a new rental if you need to move.
Therefore, being settled in your rented property before your IVA begins will reduce the chances of encountering problems.
To find out more on the 'Non Equity IVA' option simply call our IVA helpline on 0800 856 8569 and talk to one of our team.
