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IVA eligibility

Am I Eligible for an IVA?

There is no single checklist that decides it, but an IVA tends to suit a particular set of circumstances. Here is who an IVA is generally right for, who it is not, and how your eligibility is actually decided.

The short answer

Who an IVA Generally Suits

There are no rigid legal thresholds for an IVA. In practice, it tends to suit you if you live in England, Wales or Northern Ireland, owe money to more than one creditor, have mostly unsecured debt, have a steady income, and can afford a regular monthly payment after your essential living costs.

The key word is affordable. An IVA is built around what you can realistically pay each month, so a stable income you can commit from matters more than the exact size of your debt. That said, because the fees are significant, an IVA is rarely good value unless you owe at least a few thousand pounds.

A quick check

What You Generally Need

If most of these are true, an IVA could be worth exploring. They are guides, not a guarantee.

The other side

When an IVA May Not Be Right

An IVA is probably not the right tool if your debts are small, if you can only spare a very little each month, or if your income is mainly from benefits. In those situations the fees and the six-year credit impact often outweigh the benefit.

It is also worth checking whether a Debt Relief Order would clear your debts more cheaply, since for those who qualify it has no fee and lasts only a year. And if you live in Scotland, an IVA is not available at all, though a Protected Trust Deed or the Debt Arrangement Scheme work in a similar way.

The real test

How Eligibility Is Actually Decided

Final eligibility comes down to two things. First, a licensed Insolvency Practitioner assesses your income, spending, debts and assets to work out whether you can sustain an affordable payment. Second, your creditors vote on the proposal: it only goes ahead if those holding at least 75% by value of the debt that votes agree.

So no website can tell you for certain whether you qualify. The honest next step is a proper assessment, and it costs you nothing to find out, whether through us or through a free debt advice service.

Eligibility requirements

What Are the Eligibility Requirements for an IVA?

The detail behind who qualifies, answered question by question.

Who Can Apply for an Individual Voluntary Arrangement?

Anyone in England, Wales or Northern Ireland who is struggling with unsecured debt and can afford a regular monthly payment can ask a licensed Insolvency Practitioner to propose an IVA. There is no special status required; what matters is that you have debts you cannot realistically clear, a sustainable income, and you owe more than one creditor. People in Scotland use a Protected Trust Deed instead.

A group of people, representing who can apply for an IVA

Do I Need a Regular Income to Be Eligible for an IVA?

In most cases, yes. An IVA is funded by affordable monthly payments, so a steady, sustainable income is usually needed for your creditors to be confident the arrangement can be maintained. It does not have to be a wage; a reliable pension or other regular income can work too. If your income is very low or unpredictable, another solution may suit you better.

A person saving money, representing a regular income

Can I Get an IVA If I'm Unemployed or Receiving Benefits?

It is harder, but not always impossible. An IVA needs an affordable contribution each month, and if your income is made up mainly of benefits you usually will not have enough spare to sustain one, so a Debt Relief Order or another route is often more appropriate. If you have some reliable income alongside benefits it may still be worth checking, and a free adviser can tell you where you stand.

A wallet and banknotes, representing income from benefits or work

Can Homeowners and Tenants Both Qualify for an IVA?

Yes, both can qualify. Renting does not stop you having an IVA, and unlike bankruptcy an IVA does not normally force the sale of a home, which is one reason homeowners often choose it. Homeowners may be asked to release some equity near the end of the term, while tenants simply keep paying their rent as usual.

Houses, representing homeowners and tenants

Who Decides Whether I Qualify for an IVA?

Two parties, in effect. First, a licensed Insolvency Practitioner assesses your income, spending, debts and assets to judge whether you can sustain an affordable payment. Then your creditors vote on the proposal, and it only goes ahead if those holding at least 75% by value of the debt that votes agree. So no website can confirm it for certain; it takes a proper assessment.

People shaking hands on an agreement, representing who decides eligibility

What Should I Do If I'm Not Eligible for an IVA?

There are other routes. If an IVA is not right for you, a Debt Relief Order, a Debt Management Plan, Breathing Space, bankruptcy or simply a repayment plan may suit better. The best next step is free, impartial advice from a service like MoneyHelper, StepChange or Citizens Advice, who can match a solution to your circumstances. Being unsuitable for one option does not mean you are out of options.

A person choosing between options, representing alternatives if not eligible

Can I Qualify for an IVA with Only One Creditor?

An IVA is usually designed for people who owe more than one creditor, so with a single debt it is often not the most suitable route. It is not strictly impossible, and much depends on the size of the debt and whether that creditor would accept the proposal. If you owe just one creditor, it is worth getting advice on whether a simpler arrangement would serve you better.

An invoice being printed, representing a single creditor

Can I Qualify for an IVA If My Income Changes Every Month?

Yes. A variable income, which is common for self-employed people and those on changing hours, does not rule you out. Your Insolvency Practitioner works out an affordable payment based on your average income, and the annual review adjusts it over time. The key is that, on average, you can sustain a meaningful monthly contribution.

A fluctuating chart, representing variable monthly income

Can I Apply for an IVA If I Already Have a CCJ?

Yes. Having a County Court Judgment does not stop you applying for an IVA. In fact the debt behind a CCJ can usually be included, and once the IVA is approved it stops further enforcement on the included debts. The CCJ stays on your record, but the creditor becomes bound by the arrangement like any other.

Legal paperwork, representing a County Court Judgment
Explore further

Other Debt Solutions, Explained

An IVA is only one of several routes. These short guides explain the main alternatives, and the people involved, in plain English.

Debt Relief Order

A cheaper, faster route if you have a low income, few assets and smaller debts. Free to set up.

Read more

Protected Trust Deed

Scotland's formal equivalent of an IVA, usually run over about four years.

Read more

Debt Arrangement Scheme

A Scottish route to repay your debts in full over time, with interest frozen.

Read more

Insolvency Practitioner

The licensed professional who proposes and runs your IVA.

Read more

Individual Insolvency Register

The public record an IVA appears on, and when it comes off.

Read more

DRO vs IVA

How a Debt Relief Order and an IVA compare, side by side.

Read more

Debt Management Plan

An informal, UK-wide way to repay your debts at a lower monthly rate. Nothing is written off, it is free to set up, and it keeps you off the insolvency register.

 Read more
No pressure, no obligation

Find Out If You Qualify

Answer a few quick questions for an honest steer on whether an IVA could fit, then an advisor can confirm and go through every option, not just an IVA.

Check if you qualify →

Get Free, Impartial Advice First

You never have to pay anyone to find out where you stand. These services are free, independent and will go through every option with you.

MoneyHelper
Government-backed guidance · 0800 138 7777 StepChange
Free debt charity · every option covered National Debtline
Free advice line · 0808 808 4000 Citizens Advice
Free local & online debt help
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