A Debt Relief Order and an IVA solve very different problems. The right one depends mostly on your income, your assets and how much you owe. Here is how they compare, using the current 2026 rules.
| Feature | IVA | Debt Relief Order |
|---|---|---|
| Best for | A regular income with enough spare to make meaningful monthly payments. | Low income, few assets, debts up to £50,000, and not a homeowner. |
| Debt limit | No set limit, but rarely cost-effective below a few thousand pounds. | £50,000 or less of qualifying debt. |
| Spare income | Enough to fund an affordable monthly payment. | £75 a month or less after essentials. |
| Assets | Usually kept, as agreed in the proposal. | Under £2,000, plus a vehicle worth up to £4,000. |
| Homeowners | Available, though you may need to release equity near the end. | Not available if you own your home. |
| Cost | No upfront fee, but the practitioner's fees come out of your payments. | No fee at all. Free to set up through an approved adviser. |
| How long | Usually 5 to 6 years. | 12 months. |
| Monthly payments | A set monthly amount. | None. |
| Where | England, Wales and Northern Ireland. | England and Wales (Northern Ireland has its own version). |
For someone with low income and few assets, a DRO is usually far cheaper and quicker than an IVA. It has no fee, lasts a year, and writes off qualifying debts at the end. An IVA, by contrast, runs for years with the practitioner's fees taken from your payments.
Because a DRO has to be set up through a free, approved debt adviser anyway, it is always worth checking whether you qualify before committing to an IVA. If your debts, spare income or assets are above the DRO limits, or you own your home, then a DRO will not be available and an IVA may be one of the options worth exploring instead.
An advisor can check the DRO criteria and compare it with an IVA and the other routes, with no obligation.
You never have to pay anyone to understand your options. These services are free, independent and will go through every route with you.