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Can I get an IVA - UK high street with debt advice office

Can I Get an IVA? Your Complete UK Guide for 2026

Updated for 2026

Can I get an IVA? If you owe more than you can realistically repay and you are looking for a structured way out, an Individual Voluntary Arrangement could be the answer. An IVA is one of the most popular formal debt solutions in England and Wales, and in 2026 it remains a realistic option for thousands of people each year. This guide covers who qualifies, how the process works, what it costs, and what to watch out for before you commit.

What Is an IVA and How Does It Work?

An IVA is a legally binding agreement between you and the people you owe money to. It is set up and supervised by a licensed Insolvency Practitioner (IP), who acts as a go-between. You agree to make regular monthly payments, typically over five or six years, and at the end of the arrangement any remaining qualifying debt is written off.

IVAs are governed by the Insolvency Act 1986 (as amended) and are only available in England and Wales. If you live in Scotland, the equivalent is a Protected Trust Deed. In Northern Ireland, IVAs are available but follow slightly different rules under the Insolvency (Northern Ireland) Order 1989.

Because an IVA is a formal insolvency procedure, it is recorded on the Individual Insolvency Register, which is publicly searchable. It will also appear on your credit file for six years from the date it starts.

Can I Get an IVA? Eligibility Criteria in 2026

There is no single pass-or-fail test, but in practice most IVA providers look for the following:

  • You owe at least \u00a36,000 in unsecured debt (some providers set the bar at \u00a38,000 or higher)
  • You owe money to two or more creditors
  • You have a regular income, whether from employment, self-employment, or benefits
  • You can afford to pay a minimum of around \u00a380 to \u00a3100 per month towards your debts after essential living costs

Your IP will carry out a full income and expenditure assessment. They use guidelines from the Standard Financial Statement (SFS) to work out what you can reasonably afford. If you are self-employed, you can still apply, although the IP will need to see evidence of your earnings over at least the previous 12 months.

What Debts Can Be Included?

Most unsecured debts qualify, including credit cards, personal loans, overdrafts, catalogue debts, and cost of living shortfalls such as energy arrears. Some debts cannot be included, notably:

  • Mortgage or secured loan arrears
  • Student loans
  • Court fines and child maintenance
  • Most benefit overpayments

The IVA Process Step by Step

Knowing what to expect can take some of the stress out of it. Here is how the process usually runs:

Step 1: Free Assessment

You speak to a debt adviser or IP who reviews your finances. This is free and without obligation. They will tell you whether an IVA is suitable or whether another option, such as a Debt Relief Order or applying for an IVA online, makes more sense for your situation.

Step 2: Proposal

Your IP draws up a formal proposal setting out how much you will pay, for how long, and what debts are included. This is sent to your creditors.

Step 3: Creditors’ Meeting

Your creditors vote on the proposal. For it to pass, creditors holding at least 75% of your total debt (by value) must agree. Once approved, the IVA binds all named creditors, even those who voted against it.

Step 4: Monthly Payments

You make a single monthly payment to your IP, who distributes it among your creditors. Most IVAs run for five years, although six-year terms are becoming more common in 2026 where the debt level is higher.

Step 5: Completion

Once you have met all the terms, the remaining debt is legally written off. Your IP issues a certificate of completion and the entry on the Insolvency Register is removed after three months.

Benefits and Drawbacks of an IVA

Benefits

  • Your monthly payment is based on what you can genuinely afford
  • Creditors must stop all recovery action, including CCJ applications and bailiff visits
  • Interest and charges on included debts are frozen
  • Any debt remaining at the end of the arrangement is written off
  • You avoid bankruptcy, which carries stricter restrictions

Drawbacks

  • Your credit rating will be affected for six years
  • You must stick to a strict budget for the full term, typically five to six years
  • If you are a homeowner, you may be asked to release equity in year five or six
  • If the IVA fails (for example, you miss payments), you could face bankruptcy
  • An IVA is publicly listed on the Individual Insolvency Register

For a deeper look at both sides, read our guide to the IVA pros and cons.

What Happens to Your Credit Score During an IVA?

An IVA will show on your credit file for six years from the start date. During that time you will find it difficult to get credit cards, loans, or a mortgage. After the six years, the record drops off and your score starts to rebuild.

Some people worry that an IVA will make things worse, but in reality, if you are already missing payments and receiving defaults, your credit file is already damaged. An IVA draws a line under it and gives you a clear path to recovery. If you want practical steps to repair your score afterwards, have a look at our guide to improving your credit score.

Alternatives to an IVA

An IVA is not the only route. Depending on your circumstances, you might also consider:

  • A Debt Relief Order (DRO): suitable if your debts are under \u00a330,000, you have no significant assets, and your disposable income is below \u00a375 per month. See our DRO guide.
  • A Debt Management Plan (DMP): an informal arrangement where you pay reduced amounts. No legal protection, but more flexible.
  • Bankruptcy: a last resort that writes off most debts but comes with significant restrictions on your finances and career.

Free, impartial help is available from MoneyHelper, StepChange, and Citizens Advice. These services are government-backed and cost nothing to use.

The information on this page is for general guidance only and does not constitute financial advice. Your circumstances are unique, and you should speak to a qualified debt adviser or licensed Insolvency Practitioner before making any decisions about debt solutions. We cannot guarantee specific outcomes, as every case depends on individual factors including your income, expenditure, and the attitude of your creditors.

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