Who can enter into an IVA?
If you were to ask an IVA advisor ‘who can enter into an IVA’, more often than not, they’ll tell you that you must owe £10,000 or more in unsecured debts, have three or more creditors and that you can afford to pay a £100 towards your unsecured debts each month.
The truth is that none of these are legal criteria for entering into an IVA. They are actually general rules of thumb that the industry uses to determine whether or not your creditors are likely to accept your IVA proposal or not.
The criteria often used by creditors to evaluate an IVA proposal are contained in the IVA Protocol 2025 guidance:
- You are not able to repay your debts in full during the IVA period.
- You are not eligible for a Debt Relief Order.
- You will generally have debts with a combined value of more than £7,000.
- You are in receipt of a regular income other than State benefits or State pension.
- You must be a resident of England, Wales or Northern Ireland.
- Another solution (such as bankruptcy, Debt Management Plan or lump-sum settlement) doesn’t provide a better return for your creditors.
It’s important to remember that even if you do not meet this criteria, an IVA may still be possible.
Debt Advice Foundation is a registered UK charity offering free, confidential support and advice on any aspect of debt. You can read more about IVAs and whether they are suitable for your situation in our IVA section. If you need to talk to us about IVAs, please call 0800 043 40 50.
