IVA: Individual Voluntary Arrangement Guide 2026
An IVA, short for Individual Voluntary Arrangement, is a formal debt solution for people in England, Wales and Northern Ireland. It lets you make affordable payments to a licensed Insolvency Practitioner, who distributes the money to your creditors. If creditors approve the proposal and you complete it, qualifying unpaid debts included in the IVA are written off.
An IVA is a form of insolvency, not a loan or a guaranteed debt write-off. It affects your credit file, appears on a public insolvency register, restricts borrowing, and can fail if payments are not maintained. Before entering an IVA, compare it with a Debt Management Plan, Debt Relief Order, bankruptcy, and free regulated debt advice. Our detailed comparisons explain IVA vs DMP and IVA vs DRO in more depth.
Source: Insolvency Service Individual Insolvency Statistics, July 2026 and December 2025 annual tables.
What is an Individual Voluntary Arrangement?
An Individual Voluntary Arrangement is a legally binding agreement between you and your creditors. In England and Wales it is governed by Part VIII of the Insolvency Act 1986. Northern Ireland has its own insolvency legislation and IVA guidance. An IVA must be set up through a licensed Insolvency Practitioner.
In a typical IVA:
- You list your debts, income, spending and assets.
- The Insolvency Practitioner works out what you can realistically afford.
- Creditors vote on the proposal.
- The IVA starts if creditors representing at least 75% of the voting debt value approve it.
- You make one agreed payment, usually each month.
- Interest, charges and collection action on included debts are normally stopped.
- Qualifying unpaid balances are written off only if the IVA completes successfully.
GOV.UK describes an IVA as an agreement with creditors to pay all or part of your debts, with payments made to an Insolvency Practitioner who divides the money between creditors. A creditor holding a large share of the voting debt can prevent approval; the calculation is by debt value, not a headcount. Read how creditors can reject an IVA for the voting rules and possible next steps.
IVA at a Glance
| Question | Short answer |
|---|---|
| What does IVA stand for? | Individual Voluntary Arrangement |
| Where is it available? | England, Wales and Northern Ireland |
| Who sets it up? | A licensed Insolvency Practitioner |
| How long does it last? | Usually 5 years, or 6 years for many homeowners with equity |
| What creditor approval is needed? | 75% by value of voting creditors |
| Does it stop creditors? | Included creditors are bound once the IVA is approved |
| Does it affect credit? | Yes, usually for 6 years from the start date |
| Is it public? | Yes. England and Wales use the Individual Insolvency Register; Northern Ireland has its own IVA register |
| Are fees payable? | Yes, but usually from your agreed IVA payments |
| Is debt write-off guaranteed? | No. It depends on approval and successful completion |
Is an IVA Right for You?
An IVA may be worth considering if you cannot repay your unsecured debts in full, but you can make a regular affordable payment and need legal protection from included creditors. It is most often used by people who have multiple unsecured debts and enough income to offer creditors more than they might receive through bankruptcy.
An IVA may fit if:
- You live in England, Wales or Northern Ireland.
- You cannot afford your normal contractual debt payments.
- You have more than one creditor.
- You have a regular income or a lump sum that could fund a proposal.
- You need a formal arrangement that binds included creditors.
- You understand the credit file, public register, borrowing and budget restrictions.
An IVA may not be suitable if:
- Your debts are low enough to repay informally.
- You can only afford a very small monthly payment.
- Your income is mainly benefits and another solution may protect you better.
- A Debt Relief Order would clear qualifying debts more cheaply.
- You work in a role where insolvency could breach contract or professional rules.
- You are not comfortable with annual reviews and strict budget controls.
- You live in Scotland, where IVA rules do not apply.
Compare all debt options before signing anything. Use MoneyHelper’s free debt advice locator to find an adviser. IVA Online provides general information and an initial enquiry route, not a personal recommendation that you should enter an IVA.
IVA Eligibility Criteria
There is no single legal minimum debt level for every IVA. In practice, suitability depends on your debts, income, assets, creditors and the Insolvency Practitioner assessing your case. Many IVA providers use guide thresholds, but creditors decide whether the proposal is acceptable.
The 2025 Consumer IVA Protocol is a standard framework used for straightforward consumer IVAs. It generally expects multiple debts totalling £7,000 or more, sustainable income, and circumstances where the debts cannot be repaid in full within the proposed term. £7,000 is a protocol suitability guideline, not a universal legal minimum.
A DRO, very low disposable income, or reliance primarily on State benefits or a State pension can make a protocol IVA unsuitable. If one is still proposed in these circumstances, the practitioner must explain why it is appropriate. Self-employment with trade debts or complicated assets may need a bespoke proposal. Source: 2025 IVA Protocol, guiding concepts
Common IVA suitability factors include:
You cannot keep up with normal repayments on debts such as loans, credit cards, overdrafts or arrears.
IVAs are usually designed for people who owe money to multiple lenders or organisations.
You can pay something meaningful each month after essential household costs.
Income and its sustainability must be assessed. Mainly benefits or State pension income needs particular care; a lump sum may support a bespoke IVA.
IVAs are for England, Wales and Northern Ireland. Scotland has separate solutions.
You must declare your income, spending, debts, assets and relevant changes honestly.
What Debts Can Be Included in an IVA?
An IVA is mainly used for unsecured debts. Always check your own debts with a qualified adviser because secured, priority and specialist debts can be treated differently.
Debts Often Included
Borrowing and credit
- Credit cards
- Personal loans
- Payday loans
- Overdrafts
- Store cards and catalogues
Household arrears
- Council tax arrears
- Gas and electricity arrears
- Water arrears
- Phone and broadband arrears
- Old rent shortfalls after a tenancy ends
Other unsecured debts
- HMRC debts
- Benefit overpayments
- Money owed to friends or family
- Business debts if you are a sole trader
- Mortgage shortfalls after repossession
Debts Usually Not Included
Secured and ongoing housing
- Current mortgage payments
- Secured loans if you keep the asset
- Current rent payments
- Some mortgage or rent arrears unless the creditor agrees
Court and family debts
- Magistrates' court fines
- Child maintenance arrears
- Child Support arrears
- TV Licence fines
Special categories
- Student loans
- Social Fund loans
- Certain car finance agreements
- Some debts created by fraud
Check MoneyHelper’s guide to debts an IVA can cover and disclose every liability to your practitioner. Keep ongoing priority bills, such as rent, mortgage and utilities, separate from the arrears being assessed.
Joint debts need special care. Your IVA can include your liability, but the other person can still be chased for the full joint balance. Read joint debts and IVA before applying if any account is shared.
IVA Costs and Fees
IVA fees are real, but they are usually taken from the monthly payments you already agree to make rather than charged upfront. A licensed Insolvency Practitioner must explain the fees before you agree.
Common IVA fee types are:
- Nominee fee: for preparing the IVA proposal and arranging the creditor decision.
- Supervisor fee: for running the IVA after approval.
- Disbursements: necessary case costs, such as registration or insurance-related costs.
The important question is not only “what are the fees?” but “how much will creditors receive, how much will I pay in total, and what happens if the IVA fails?” GOV.UK warns that an IVA can be cancelled if repayments are not kept up, and the Insolvency Practitioner may make you bankrupt.
How much does an IVA cost each month?
There is no single monthly IVA price. The contribution depends on what remains after reasonable living costs, the proposed term and what creditors accept. Include disability, caring, childcare and essential transport costs in the budget. Fees reduce the amount distributed to creditors, even when there is no extra bill on top of the agreed payment.
Illustration, not a quote: £150 a month over 60 months is £9,000 paid into an IVA. Over 72 months it is £10,800. These totals assume payments stay the same and exclude any additional contributions. They do not show creditor receipts or a guaranteed write-off amount.
Before signing, request the fee breakdown, payment schedule and estimated creditor return. The official IVA key facts explain how protocol IVA fees come from payments. Our IVA costs and fees guide covers the questions to ask.
IVA Application Process
The IVA process usually follows these steps:
- Debt advice and option check - Review whether an IVA, DMP, DRO, bankruptcy or another route is suitable.
- Income and budget review - Work out what you can afford after rent or mortgage, food, utilities, transport and essential living costs.
- Debt and asset check - Confirm creditors, balances, car finance, property equity, savings and anything else relevant.
- Proposal drafted - A licensed Insolvency Practitioner prepares the IVA proposal.
- Creditors vote - The IVA is approved if creditors representing at least 75% of the voting debt value agree.
- Payments begin - You make the agreed monthly or lump sum payment.
- Annual reviews - Your income, expenditure and circumstances are reviewed, usually every year. See our IVA annual review guide.
- Completion certificate - If completed successfully, qualifying remaining debts included in the IVA are written off.
You should not be pressured into signing quickly. A good provider will explain alternatives, fees, risks, what debts are excluded, and what happens if your circumstances change. For a protocol IVA, you should receive the key facts and proposal before signing.
Prepare recent payslips or other income evidence, bank statements, creditor balances, housing costs and details of savings, property and car finance. Starting an enquiry does not mean an IVA has been approved or creditor action has stopped.
What if my income changes or I miss a payment?
Contact your supervisor promptly if you lose income, essential costs rise, or you receive extra money. Do not simply cancel the payment. A review may lead to reduced payments, an agreed break or a proposal to creditors to change the arrangement.
Under the 2025 standard terms, a supervisor can agree certain payment reductions and holidays within specified limits. A payment holiday can extend the term; a larger change may require creditor approval. Your own proposal, protocol version and any modifications determine what applies. 2025 IVA standard terms
See our guides to annual reviews, early settlement and IVA failure for the relevant next steps. Extra income does not automatically mean you can finish early.
Benefits of an IVA
For someone whose circumstances suit the arrangement, an IVA can:
- replace separate payments on included unsecured debts with one agreed contribution;
- bind included creditors after approval and stop their recovery action under the arrangement;
- stop further interest and charges on included debts while its terms are met;
- allow qualifying unpaid balances to be written off after successful completion.
Your practitioner administers the arrangement, but you still need to pay ongoing bills, report changes and meet its terms. Statutory statements may still arrive from creditors. Balance these benefits against the disadvantages below and our fuller IVA pros and cons guide. Official IVA key facts
IVA Risks and Disadvantages
IVAs are often advertised around debt write-off, but the drawbacks matter just as much as the benefits.
| Risk | What it means |
|---|---|
| Credit file impact | The IVA normally stays on your credit file for 6 years from the start date. |
| Public register | In England and Wales, your details normally remain on the Individual Insolvency Register until 3 months after the IVA ends. Northern Ireland has a separate IVA register. |
| Strict budget | Your spending is reviewed and your monthly payment can change if income rises. |
| Borrowing limits | You usually need permission to borrow more than the agreed limit, commonly £500. |
| Home equity | Under the 2025 protocol, equity can make the term 6 years rather than 5; bespoke terms can differ. |
| Job or professional issues | Some contracts and regulated roles require disclosure or restrict insolvency. |
| Failure consequences | Creditors can resume action and may add interest or charges if the IVA fails. Read what happens if an IVA fails. |
| Fees paid first | Early payments can cover more of the IVA costs than the creditor balances. |
StepChange specifically warns that some bold IVA advertising claims may be misleading. Be cautious with promises such as “write off 90% of debt” unless the provider has fully assessed your finances.
How an IVA Affects Your Credit Score, Home and Job
Credit Score and Borrowing
An IVA is a form of insolvency and has a serious credit impact. It normally appears on your credit file for 6 years from the start date. During the IVA, obtaining new credit is restricted and mainstream lenders may decline applications.
Completing an IVA early does not remove it from your credit report early: it is marked as completed but normally remains for six years from approval. Experian explains the credit-record timeline.
After the IVA drops from your file, credit can improve gradually, but lenders may still ask whether you have ever been insolvent for some products such as mortgages. Read getting a mortgage after an IVA for the factors lenders may consider.
Homeowners
Under the 2025 IVA Protocol, the family home is excluded from realisation: you are not required to sell or remortgage it to put equity into that protocol IVA. However, your individual beneficial interest of £10,000 or more normally means a 72-month term rather than 60 months.
The calculation uses 85% of the property’s value, less secured borrowing, then considers your ownership share. The £10,000 threshold applies to each person’s share separately, rather than automatically to the full equity of a jointly owned home. Ask your practitioner to show the valuation and calculation in writing. 2025 IVA Protocol: home ownership
Existing and bespoke IVAs can differ. An older agreement may contain an equity-release clause. The newer protocol does not automatically change an IVA you have already signed.
Keep paying your mortgage and any secured loans unless your adviser tells you otherwise. Missing secured payments can put your home at risk outside the IVA.
Renting
An IVA does not automatically end a tenancy, but future landlords or letting agents may run credit checks. If your tenancy agreement mentions insolvency, get advice before proceeding. Read IVA and renting if you rent or expect to move during the IVA.
Employment
Most jobs are unaffected, but some roles need extra checks. Review your contract or professional rules if you work in financial services, legal services, accountancy, policing, security, senior management, or any role involving client money.
IVA vs DMP, DRO and Bankruptcy
No debt solution is best for everyone. The right route depends on your debts, income, assets, job, home, health and long-term plans. The options below are not all available throughout the UK: a trust deed is Scottish, and DRO rules differ between England and Wales and Northern Ireland.
| Option | Best suited to | Main advantage | Main drawback |
|---|---|---|---|
| IVA | People who can make affordable payments and need creditor protection | Legally binds included creditors and can write off qualifying unpaid debt after completion | Formal insolvency, credit impact, register, fees and failure risk |
| Debt Management Plan | People who can repay debts over time but need lower payments | Flexible and informal | Creditors do not have to freeze interest or stop action |
| Debt Relief Order | People with low spare income and assets who meet the rules in their jurisdiction | Qualifying debts can be written off after the DRO period; no application fee in England and Wales | Strict eligibility limits and restrictions; Northern Ireland has different rules |
| Bankruptcy | People whose debts cannot realistically be repaid and where asset/job impact is acceptable | Can clear debts faster than an IVA | Stronger asset, job, credit and public-register consequences |
| Trust Deed | Scottish residents with qualifying debts and income | Scotland-specific formal debt solution | Not available in England, Wales or Northern Ireland |
GOV.UK confirms that DRO applications are free in England and Wales. Check the full eligibility rules with an approved adviser.
Read our detailed comparisons:
- IVA pros and cons
- IVA vs bankruptcy
- IVA vs DMP
- IVA vs DRO
- IVA and car finance
- IVA and renting
- Joint debts and IVA
- What happens if an IVA fails
- Debt Management Plan guide
- Debt Relief Order guide
- Trust Deed Scotland guide
IVA Statistics in 2026
The latest release available when this guide was checked is July 2026, published on 18 August 2026. IVAs remain one of the main formal debt solutions in England and Wales.
| Period | IVAs | Total individual insolvencies | IVA share |
|---|---|---|---|
| 2025 | 71,841 | 126,240 | 57% |
| 2024 | 67,087 | 117,958 | 57% |
| 2023 | 64,018 | 103,433 | 62% |
| 2022 | 87,848 | 118,752 | 74% |
| July 2026 (monthly, seasonally adjusted) | 7,442 | 11,926 | 62% |
The annual number of IVAs increased by 7% in 2025 compared with 2024, but remained below the record annual levels seen between 2019 and 2022. IVAs accounted for 59% of individual insolvencies in the 12 months ending July 2026. That rolling annual share is different from the 62% share for July alone.
Annual figures above are as published in the December 2025 release; the monthly figures come from the July 2026 release. Figures may be revised, and percentages are rounded.
Statistics show how common IVAs are, not the likelihood that an individual IVA will succeed. They do not tell you whether an IVA is right for your situation. Suitability depends on personal advice.
How to Choose an IVA Provider
Before agreeing to an IVA:
- Check the Insolvency Practitioner on the official GOV.UK Insolvency Practitioner search.
- Check any debt advice firm and its permissions on the FCA Register. An insolvency practitioner’s professional licence is a separate check; ask which authorisation or exclusion covers the advice you receive.
- Ask whether the firm gives advice directly or refers you to another company.
- Ask for all fees, failure risks and alternatives in writing.
- Be wary of claims that guarantee a specific percentage of debt write-off.
- Take free, independent debt advice if you are unsure.
You can also compare providers in our IVA companies guide and check likely suitability using our IVA calculator.
Frequently Asked Questions
What is an IVA?
An IVA is a legally binding agreement with your creditors to repay what you can afford, usually over 5 or 6 years, through a licensed Insolvency Practitioner.
How long does an IVA last?
Monthly contribution IVAs usually last 5 or 6 years. Under the 2025 protocol, a qualifying share of home equity of £10,000 or more normally means 6 years. Payment breaks can extend the term, and creditors may agree an early settlement.
Does an IVA write off debt?
An IVA can write off qualifying unpaid debts only after creditors approve the proposal and you successfully complete the IVA. The amount written off is not guaranteed before your finances are assessed.
Will an IVA affect my credit score?
Yes. An IVA normally appears on your credit file for 6 years from approval, even if completed early. In England and Wales it is also listed on the Individual Insolvency Register, normally until 3 months after it ends. Northern Ireland has its own register.
Can I keep my house in an IVA?
Under the 2025 Consumer IVA Protocol, the family home is not sold or remortgaged to fund the IVA. Your share of equity is assessed using the protocol calculation; £10,000 or more normally means 6 years of payments rather than 5. Older and bespoke agreements can differ.
Is an IVA available in Scotland?
No. IVAs apply in England, Wales and Northern Ireland. Scotland has different debt solutions, including protected trust deeds and the Debt Arrangement Scheme.
Is an IVA a loan?
No. An IVA restructures repayment of existing debts through a formal agreement with creditors. A debt consolidation loan involves taking out new borrowing to repay existing accounts. They have different costs, risks and eligibility checks.
What is the minimum debt for an IVA?
There is no universal statutory minimum. The 2025 protocol generally expects multiple debts totalling at least £7,000; this is a suitability guideline, not an automatic entitlement. Income, assets, affordability and alternatives must also be assessed.
Can I apply for an IVA online?
You can start an enquiry online and supply information about your finances. A licensed insolvency practitioner must still assess your circumstances, prepare the proposal and seek creditor approval. Completing an eligibility form does not create an IVA or guarantee acceptance.
Ready to Compare Your Options?
If you are considering an IVA, use our free resources to understand the next step before committing to any payment plan:
- Use the IVA calculator to check whether an IVA may fit your circumstances.
- Compare IVA companies before choosing a provider.
- Read IVA pros and cons before signing an agreement.
- Understand IVA costs and what fees come from your payments.
Check Whether an IVA May Fit
Start an enquiry with details of your debts and budget. A full assessment and creditor approval are needed before an IVA can begin.
Start Your Free IVA CheckYou can also find free, impartial debt advice through MoneyHelper before choosing a provider.
This guide was checked against official government, MoneyHelper and debt-charity guidance on 6 September 2026. It is general information, not personal debt advice.
Sources checked
- GOV.UK: options for dealing with your debts for the core IVA definition, creditor approval and responsibilities.
- GOV.UK: 2025 IVA Protocol for protocol suitability and the home-equity calculation. Older and bespoke proposals can differ.
- GOV.UK: 2025 standard terms for contributions, reviews and payment difficulty.
- GOV.UK: IVA Protocol key facts for fees, monthly payments, home equity, payment difficulty and register rules.
- Insolvency Service: July 2026 individual insolvency statistics for July figures, published 18 August 2026.
- Insolvency Service: December 2025 annual statistics for annual IVA volumes and trend data.
- MoneyHelper IVA guide for free debt advice, debts included and how IVAs work.
- Citizens Advice IVA hub for user journeys before and during an IVA.
- StepChange IVA guidance for commercial-claim warnings, risks, benefits and provider trust checks.
- Experian: IVA credit records for the effect of early completion on credit reporting.
- nidirect: individual voluntary arrangements for Northern Ireland guidance and its IVA register.
- FCA Register and GOV.UK Insolvency Practitioner search for provider verification.
Our editorial policy explains how we check sources and the limits of this information.