Can you get an IVA while claiming universal credit?

An IVA is a legally binding agreement between you and your creditors that lets you pay back your debts at a rate you can afford.

It usually lasts for five or six years. After that time, any remaining debt included in your IVA is written off meaning you don’t have to pay it back.

An IVA will stay on your credit file for six years from the date it starts, making it harder to borrow from mainstream lenders during that time.

Universal credit is replacing six other benefits with a single monthly payment. You may get it if you’re out of work or on a low income.

Yes, in theory, there’s nothing to stop you getting an IVA while you’re claiming UC.

Having said that, you need to have a steady income and a reasonable amount of money left over each month after paying for essentials. If you’re on UC, it may be that your income is too low to make monthly IVA payments.

It’s important to get impartial debt advice to make sure an IVA is your best option before going ahead.

Depending on how much you owe, your income and outgoings, there may be better options available.

Absolutely. If an IVA is the most suitable way for you to deal with your debts and your creditors approve your proposal, you can continue to claim universal credit.