The Debt Level, Question by Question
How much you need, broken down into the questions people actually ask.
Is there a minimum amount of debt for an IVA?
There is no legal minimum debt for an IVA. What matters is whether the arrangement makes sense overall: enough debt that writing some off is worthwhile, a regular income, and enough spare each month to sustain the payments. A small debt does not automatically rule you out, but it often means an IVA is not the best value.
Can I get an IVA with less than £6,000 of debt?
Sometimes, but it is often not the best option. Below around £6,000 the fees can absorb much of what you pay, so creditors may be reluctant and cheaper routes usually win. A Debt Relief Order or a free Debt Management Plan may suit better. Some providers will still consider smaller debts case by case, so get free advice first.
What is the usual guideline figure?
Most providers work to a guideline of around £6,000 to £7,000 of unsecured debt, and the 2025 IVA Protocol points to typical protocol debts of £7,000 or more. Some firms use lower internal figures, but below this level the fees usually make an IVA poor value compared with cheaper routes.
Is there a maximum amount of debt for an IVA?
No. There is no upper limit on the debt an IVA can cover. What caps the arrangement is not the size of the debt but what you can realistically afford to pay over the term, since that is what your creditors weigh up when they vote.
Can I get an IVA with more than £100,000 of debt?
Yes. Large unsecured debts are common in IVAs, and there is no maximum. With higher balances, creditors look closely at whether your payments will recover a worthwhile share over the term. If they will not, bankruptcy or another route may be suggested instead, so honest advice matters even more at this level.
Why does the amount of debt matter?
An IVA writes off part of what you owe, so creditors only agree if it leaves them better off than bankruptcy. With a tiny debt, the practitioner's fees would absorb most of your payments and creditors would recover very little. As a rough guide, they often expect to get back at least a quarter of the original debt, which is easier with a meaningful balance.
Does my income matter more than the amount of debt I owe?
In many cases, yes. An IVA is built around what you can pay each month after essential living costs, so your income and spare cash often decide suitability more than the headline debt figure. With little spare each month an IVA rarely works whatever the debt; with a steady income, even larger debts can be manageable.
How do Insolvency Practitioners decide if my debt level is suitable?
An Insolvency Practitioner looks at the whole picture, not just a number: your total unsecured debt, how many creditors you owe, your income and essential costs, and what you could realistically pay each month. They then judge whether an affordable payment would return enough to creditors to make an IVA worthwhile, and whether another solution would serve you better.
Can I get an IVA if I only owe one creditor?
Usually an IVA is 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 one creditor would accept the proposal. With a single creditor, it is worth checking whether a simpler arrangement would serve you better.
How many creditors do I need to qualify for an IVA?
Generally at least two. An IVA brings several debts together into one arrangement, so it is built for people who owe more than one creditor. The exact number matters less than your total unsecured debt and what you can afford, but owing two or more creditors is the usual starting point.
Does the type of debt affect whether I qualify?
Yes. An IVA is for unsecured debts such as credit cards, loans, overdrafts and catalogues. Some debts cannot be included or must be handled separately, including mortgages, secured loans, student loans, court fines and child maintenance. If most of what you owe falls outside an IVA, it may not be the right fit, so the make-up of your debt matters as much as the total.
Can secured and unsecured debts both count towards an IVA?
Only unsecured debts count toward an IVA. Secured debts, such as a mortgage or hire purchase, stay outside the arrangement and you keep paying them as normal. So when working out whether your debt level suits an IVA, it is your total unsecured debt that matters, not your secured borrowing.
