Anyone struggling with debts will sympathise about how stressful it can be and in fact, many debtors find themselves having to seek medical advice for stress, depression and even suicidal thoughts.

As surprising as it might sound, your health CAN actually affect your application for an IVA and there are various reasons for this.

If you’re currently employed and have any health issues then your creditors will need assurance that this won’t affect your ability to pay your monthly repayments in the longer term.  This could happen for a number of reasons, for example:

   - You’ve either previously (or are likely to) be signed off sick, thus potentially reducing your monthly income, whether that be short or long term.

   - You have a current condition which may render it impossible for you to work as many hours in the foreseeable future (i.e. during the IVA period, which is usually 5 years).

   - You’re pregnant and will be taking maternity leave (thus reducing your monthly income)

   - You have a current health condition which is unpredictable in nature but may require time off work and/or may require you to stop working altogether.

What if I have a health condition?  Surely my creditors can’t discriminate against me?

If you’re in debt then your creditors will want to help – rather than hinder – your current situation.  That said, they’ll also want some sort of reassurance that you’ll be able to repay your monthly payments throughout the duration of your Individual Voluntary Arrangement.

If, for example, you have any sort of health plan or insurance in place which could help you meet the monthly payments (or could even borrow the money from family or friends) then your insolvency practitioner may be able to convince your creditors that you’re fully committed to the IVA and will pay; regardless of what the future may hold for you.

In other cases, it may be that your past health problems have resulted in a loss of income and thus your inability to repay your debts.  In this case, your creditors are more likely to look on your proposal more favourably since you’re demonstrating a genuine desire to repay what you owe.

Of course, no two situations are ever the same – and especially when it comes to health conditions.  For this reason it’s advisable to speak with both your insolvency practitioner and even your GP to get more detailed advice on the best way forward.  It may be, of course, that your GP or other health professional will be able to give you supporting evidence for onward submission to your insolvency practitioner and creditors which could then go in your favour as regards having the proposal accepted.  That said, if there is a genuine concern that you may not be able to pay due to health reasons then you might be better advised looking at other debt management options such as bankruptcy or IVA companies.  Remember, your insolvency practitioner is there to help you so don’t be afraid to ask for advice.