Eligibility for Universal Credit and entering into an IVA
With the current cost of living crisis, it is crucial to know the options available to the public to help in this time of need.
In this Blog, we will discuss Universal Credit and IVA, How to apply, the requirements and much more.
So what is Universal Credit? This is a Government provided monthly payment to help out with housing costs and living costs in general.
If you are on low-income, have no income or are unable to work this will be a great help to you and your household.
When it comes to eligibility we could go on for hours and hours, so we will be focusing on the main and most important bullet points.
Who can claim it?
Universal credit can be applied to, if one is unemployed or on a low income. The minimum age is typically 18, but there are exceptions for certain circumstances, which we will discuss later on.
If you are an EU, EEA or Swiss citizen you can apply for and claim Universal Credit.
To be eligible you and your family will need to have a settled or pre-settled status under the EU settlement scheme.
A benefits checker and benefits calculator is available on the Government website. This can help you understand what benefits you may be entitled to and how much you will receive.
To apply for and claim Universal Credit you need to have less than £16,000.
An IVA, also known as Individual Voluntary Arrangement, is a legally binding contract between you and your creditors to pay back any debts owned over an agreed period of time. This means that your creditors will not charge interest on your payments and will also stop chasing you for payment.
If you do decide to get an IVA here are a couple of thighs to note:
The agreed payment must be paid, whether this is a monthly fee or a total sum.
You should always inform your IVA provider if your income increases
Do not take any loans out without consulting your IVA provider first
The payment plan:
When choosing to go for an IVA the payment plan will be decided between you and your insolvency practitioner.
This will be based on an amount you can afford. Your creditors will have to agree to this.
If it is decided you will partake in a monthly payment, this will usually last about 5 years.
What debts does an IVA include?
You can include this list of services in your IVA:
-gas and electricity arrears
-Council Tax arrears
-income tax and national insurance arrears
-tax credit or benefit overpayments
-debts to family and friends
-other outstanding bills
How Silver Insolvency can help you!
We have over 40 years of experience in the industry and can help you solve issues, which feel impossible to face.
Get in contact today!
0203 961 7169
07872 606 005