Worked Examples: How an IVA Could Look

A Note Before the Numbers

These examples are illustrative and hypothetical. They are not real cases, not a quote, and not a promise of any outcome. Real IVAs are based on what you can genuinely afford after essential living costs, and the amount written off, if any, varies a great deal. Always get personal advice before relying on any figures.

Example 1: Credit Cards and a Loan

Someone owes about £18,000 across three credit cards and a personal loan. After essential living costs, they can afford around £120 a month. In an illustrative five-year IVA they might pay roughly £7,200 in total, with the remaining balance written off on completion. The exact figures would depend on fees, creditor agreement and their reviews.

Example 2: A Homeowner with Equity

A homeowner owes about £30,000 unsecured and can afford £200 a month. Under the current rules their home would not be force-sold; instead, if they have meaningful equity, their IVA might run six years rather than five, with extra payments standing in for releasing equity. This is purely illustrative, their adviser would calculate the actual position.

Example 3: When an IVA May Not Fit

Someone owes £9,000, is on a low income, and can only spare a few pounds a month. For them, an IVA’s fees and length might make it the wrong tool, and a Debt Relief Order or free advice could serve them far better. A good adviser would say so, rather than push an IVA.

See Your Own Picture

To explore rough numbers for your situation, try the IVA calculator, remembering it is a guide, not a decision, and then take free, impartial advice before going further.