IVA advice you can trust

An Individual Voluntary Arrangement (IVA) is a legally binding agreement under the Insolvency Act 1986 between you and your creditors to repay what the approved proposal requires over a set period, often five or six years. If it completes, remaining included qualifying debt is written off. Suitability depends on the full debt, income, budget, assets and alternatives—not a single balance threshold.

We provide free initial IVA guidance and, where appropriate, can connect you with licensed Insolvency Practitioners who assess your situation under current UK insolvency regulations. Whether an IVA is right for you or not, we’ll help you understand the main options before you decide what to do next.

How Does an IVA Work? #

An IVA follows a straightforward process managed by a licensed Insolvency Practitioner on your behalf:

1. Assessment: An Insolvency Practitioner reviews your debts, income, and essential expenses to calculate what you can realistically afford to pay each month.

2. Proposal: Your IP prepares a formal proposal under the IVA Protocol and submits it to all your creditors, explaining what you’ll pay and over how long.

3. Creditor Approval: Approval generally requires at least 75% by value of creditors who vote, with additional rules for connected creditors. Creditors can accept or reject the proposal.

4. Legal Protection: Once approved, the IVA binds included creditors. Interest and charges on included debts are normally dealt with under the approved terms, and those creditors should stop direct collection.

5. Completion: You make the agreed contributions and meet review, disclosure and other obligations. If the IVA completes, remaining included qualifying debt is normally released.

Throughout the process, your Insolvency Practitioner handles the formal administration. You must make the agreed payments, disclose changes and assets, provide review documents and comply with the proposal.

Learn more about how IVAs work →

Do You Qualify for an IVA? #

To qualify for an IVA, you typically need to meet these criteria:

• Several debts that cannot realistically be repaid in full; the 2025 Protocol says a protocol IVA will usually involve £7,000 or more, but this is not a legal minimum
• Regular income from employment, self-employment, or benefits
• Sustainable surplus income after reasonable essential living costs; there is no single statutory minimum monthly payment
• Unable to pay debts in full within a reasonable timeframe

If you’re facing constant creditor calls, bailiff action, or court threats, get advice before the next deadline. An IVA provides protection only after approval and only for covered debts. Qualifying debts can include credit cards, personal loans, overdrafts, payday loans and some council tax arrears.

An IVA isn’t suitable if your income is very low or irregular, if you can afford to repay your debts through a standard repayment plan, or if you work in certain professions (police, armed forces, some financial services roles) where insolvency restrictions apply.

Ready to start carefully? See how to apply for an IVA online before moving into a formal application.

Not sure if an IVA is right for you? Read our guide: Is an IVA Suitable for Me?

If your IVA search started because a named collector or enforcement agent has written to you, check the specific guide before responding. Start with Lowell Financial, Cabot Financial, Link Financial, Moorcroft Debt Recovery, BW Legal, Mortimer Clarke Solicitors, Capquest Debt Recovery, Marston Holdings or the full debt help resource directory.

What Debts Can an IVA Include? #

An IVA proposal must disclose your full financial position and normally deals with qualifying unsecured debts together; you cannot simply leave out a creditor to favour it. Common potentially included debts are:

Debts that CAN go into an IVA:

• Credit cards and store cards
• Personal loans and overdrafts
• Payday loans, catalogue debts, and gambling debts
• HMRC debts (tax credit overpayments, self-assessment tax)
• Council tax debt
• CCJ debts and County Court judgments
• Utility bill arrears (gas, electric, water)
• Mobile phone contract arrears
• Debts with debt collectors and bailiffs

Debts that CANNOT go into an IVA:

• Secured loans and mortgages (unless you’ve left the property)
• Hire purchase or car finance agreements
• Court fines and magistrates’ fines
• Student loans
• Child maintenance arrears
• TV licence fines
• Parking penalty charges (in most cases)

If you’re being chased by multiple debt collection agencies or have received enforcement letters, an approved IVA may stop direct action for debts included in the arrangement. It does not cover every debt or automatically undo every court or enforcement step. See our guides on credit card debt management, council tax problems, and dealing with bailiffs.

IVA Advantages and Disadvantages #

An IVA has significant benefits but also real drawbacks. Here’s the honest picture:

Advantages #

Debt write-off: If the IVA completes, remaining included qualifying debt is written off. There is no reliable standard percentage; it depends on the approved contributions, assets, fees and creditor terms.

Included creditor contact stops: Once approved, creditors bound by the IVA should deal through the arrangement rather than continue direct collection. Debts outside the IVA and existing urgent deadlines need separate advice.

Interest and charges on included debts: These are normally frozen or dealt with under the approved terms. IVA fees are paid from the money contributed, so not every pound is distributed to creditors.

Protect your home: You will not usually need to sell your home. Under the 2025 IVA Protocol, if you have a beneficial interest in a family home worth £10,000 or more, the IVA will usually last 6 years instead of 5.

One sustainable payment: The proposal should use affordable surplus income after reasonable essential costs. There is no universal statutory starting payment.

Disadvantages #

Credit file damage: An IVA stays on your credit file for 6 years, making borrowing difficult during that time.

Borrowing restrictions: You can’t take out credit over £500 without your IP’s permission for the entire duration.

Windfalls and unexpected assets: These must be disclosed and may have to be paid in under the signed terms. Do not assume a universal threshold.

Failure risk: Official cohort outcomes vary by start year and elapsed time. The Insolvency Service reported a 34% lifetime termination rate for IVAs registered from 2016 to 2018, while newer cohorts have had less time to fail. If an IVA terminates, creditors can pursue outstanding balances under the terms.

5-6 year commitment: That’s a long time living on a restricted budget with annual financial reviews.

Public record: Your details appear on the Individual Insolvency Register (though it’s not advertised).

For a complete breakdown of what life with an IVA actually looks like, including real budgets and failure scenarios, read our detailed guide: IVA Pros and Cons

How Much Does an IVA Cost? #

The proposal must disclose nominee remuneration, supervisor remuneration and expenses, total expected contributions and the estimated amount reaching creditors. Creditors can approve or modify the fees.

There is no reliable universal “typical cost” or write-off calculation. Fees and creditor returns depend on the proposal, contributions, assets, extra income, expenses and modifications. Ask for the full table and any separate upfront charge or refund terms before signing; release of remaining included qualifying debt depends on successful completion.

IVA vs Other Debt Solutions #

An IVA isn’t the only way to deal with debt. Here’s how it compares to other formal solutions:

IVA vs Bankruptcy #

IVA: Can offer more control of assets than bankruptcy, but the proposal must deal with property and other assets. A protocol IVA is normally 60 or 72 months, appears on the public insolvency register and releases included qualifying debt only on completion.

Bankruptcy: Discharge is usually after 12 months in England and Wales, but assets and surplus income can still be dealt with, some work restrictions may apply and certain debts are not released.

Neither option should be chosen from one factor alone. Compare creditor return, home and vehicle, surplus income, fees, excluded debts, work, failure risk and every less restrictive alternative with regulated advice.

IVA vs Debt Management Plan #

IVA: Legally binding on covered creditors once approved; treatment of interest and the term are set by the proposal, and included qualifying debt is released only if it completes.

DMP: No debt write-off (you repay everything eventually), informal arrangement so creditors can still pursue you, interest may continue, flexible duration.

A DMP suits people who can afford to repay debts in full but need lower payments. An IVA suits people who cannot realistically repay everything.

IVA vs Debt Relief Order #

DRO: Normally lasts 12 months and can write off qualifying debts if you live in England or Wales, owe £50,000 or less, have limited assets and have £75 a month or less in spare income. There is no application fee and an approved adviser must apply for you.

If you qualify for a DRO, it may be faster and simpler than an IVA. But if you earn too much, have assets that rule you out, or owe over £50,000, an IVA may be more suitable.

Breathing Space Scheme #

Before committing to a debt solution, ask an authorised adviser whether Breathing Space applies. A standard moratorium normally gives up to 60 days of protection on qualifying debts, including a pause on most interest, fees and enforcement after notification. It does not cancel debt and exceptions apply.

For comprehensive comparisons and help choosing the right solution, visit our debt help page or read about writing off debt.

If you’re struggling with debt and want to find out what options are available, use our IVA eligibility check to see whether an IVA may be suitable.

Frequently Asked Questions #

What is an IVA? #

An Individual Voluntary Arrangement is a formal, legally binding agreement with creditors. You make the agreed contributions and comply with the proposal; if it completes, remaining included qualifying debt is normally released. A licensed Insolvency Practitioner proposes and supervises it.

How long does an IVA last? #

Standard IVA payments are usually 60 months (5 years). Under the 2025 Protocol, a protocol IVA is usually 72 months (6 years) if you have a beneficial interest in a family home worth £10,000 or more. Payment breaks for genuine hardship can extend the term further.

Will an IVA affect my mortgage? #

An IVA does not reduce your mortgage and you must keep secured payments current. The proposal must explain the treatment of your family-home interest. Refinancing during or after an IVA can be difficult and depends on lender criteria, so check the signed terms and mortgage conditions.

Can I get a car on finance with an IVA? #

Car finance can be difficult and expensive during an IVA. The arrangement may require supervisor permission for new credit, and the payment must be affordable. Check eligibility without repeated applications and compare the APR and total amount payable with keeping, repairing or replacing the vehicle another way.

Will my employer know about my IVA? #

Employers are not routinely notified, but an IVA is on the public insolvency register. Employment contracts, security vetting and regulated roles can require disclosure or approval. Check your contract and professional rules before applying.

What happens if my IVA fails? #

If an IVA terminates, the protection ends and creditors can resume collection of outstanding balances. The signed terms determine how contributions, fees, interest and any bankruptcy provision are handled. Official failure rates vary by cohort and elapsed time, so ask a provider for comparable outcomes and its support process before signing.

Can I end an IVA early? #

You can ask your supervisor about a full-and-final variation funded by an inheritance, sale, redundancy payment or third party. The offer is compared with what creditors could expect under the existing terms. Creditors decide whether to accept it; no standard percentage guarantees early completion.

Is an IVA better than bankruptcy? #

Neither is universally better. Compare your home and other assets, income, excluded debts, work, fees, duration, creditor return and failure risk with every suitable alternative before deciding.

How much debt write-off can I expect? #

There is no reliable standard IVA write-off percentage. The outcome depends on the approved proposal, affordable contributions, assets, fees, creditor modifications and whether the arrangement completes. Ask for the estimated creditor return and total fees in writing before signing.

Choose the Right IVA Company #

Not all IVA providers are the same. When choosing who to work with, look for:

• Licensed Insolvency Practitioners regulated by professional bodies (Insolvency Practitioners Association, ICAEW, ICAS)
• Transparent fee structures with no hidden charges
• Clear explanations of alternatives before recommending an IVA
• Honest discussions about failure rates and risks
• Reviews and testimonials from previous clients

Compare IVA companies to understand provider types, official market data, and the red flags that mark companies to avoid. If you are ready to apply, use our how to choose an IVA company checklist before sharing your details.

Get Free IVA Advice #

If several debts are unaffordable and you cannot see a realistic way to repay them in full, compare an IVA with every suitable alternative. The earlier you get advice, the more options may remain available.

Our service is completely free and confidential. We’ll assess your situation honestly and explain all your options, not just IVAs. Whether you qualify or not, you’ll leave the conversation with clarity about your next steps.

For more information about IVAs and other debt solutions, explore our guides:

• What is an IVA? - Complete guide to how IVAs work
• IVA suitability guide - Detailed eligibility requirements
• IVA advantages and disadvantages - Honest advantages and disadvantages
• Council tax arrears help - Dealing with council tax debt
• Utility Debt - Gas, electricity and water arrears
• Mobile Phone Debt - Contract arrears and collectors
• Gambling Debt - Debt help alongside gambling support
• Debt collector rights guide - Your rights when being chased
• Bailiffs - What bailiffs can and can’t do
• Debt solution hub - All debt solution options explained

Sources and Review Standards #

We check key IVA and debt-solution facts against official and independent UK guidance, including GOV.UK, the Insolvency Service, Citizens Advice, and debt-advice scheme rules. Pages are written to give a direct answer first, then explain the risks, eligibility limits, alternatives, and next steps.

• GOV.UK IVA key facts
• Citizens Advice: individual voluntary arrangements
• Insolvency Service IVA outcomes 2025
• GOV.UK Breathing Space guidance

Testimonials #

IVA Advice has collected 565 customer reviews with an average score of 4.99 out of 5.

“Thanks so much to Ethan & Matt for guiding me through the initial process. They were professional, informative and highly supportive.”

“Good advice and very helpful.”

“Very helpful and supportive of my situation no judging talked me through the process very professional.”

Read more selected customer feedback on our reviews page.