Am I eligible for an IVA?
There is no statutory minimum debt for an IVA, but the 2025 IVA Protocol indicates that typical suitability involves multiple debts totalling around £7,000 or more, a regular disposable income to pay from, and not being eligible for a Debt Relief Order. Costs, risks and what actually happens, explained without the sales pitch.
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The practical tests
Multiple creditors. An IVA is a collective arrangement. With one creditor you would normally negotiate directly rather than pay for a formal insolvency.
A sustainable surplus. You need genuine disposable income after essential living costs, every month, for five years. Advisers commonly look for something in the region of £80 to £100 a month as a working floor, though there is no fixed rule.
Not DRO-eligible. If your debts are under £50,000, your assets under £2,000, your spare income £75 a month or less and you do not own a home, a Debt Relief Order is free and lasts one year. An IVA in those circumstances would be a worse deal and the Protocol recognises it.
Resident in England, Wales or Northern Ireland. IVAs do not exist in Scotland.
What does not disqualify you
Being self-employed does not disqualify you — IVAs are often used to keep a trading business going. Being on benefits does not automatically disqualify you either, though it usually means a DRO is the better route. Having a mortgage does not disqualify you; it changes the terms. A previous IVA does not permanently bar you, though creditors will want to understand why the first one failed.
Where a website cannot help you
Any tool that tells you that you are "approved" or "qualify" for an IVA from a handful of clicks is not telling you the truth. Eligibility turns on a verified income and expenditure assessment, an accurate list of debts, a valuation of your assets, and a judgement about how your particular creditors are likely to vote. That work is done by a person, and by law it should be done by someone authorised to do it.
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Common questions
Is there a minimum debt for an IVA?
Not in law. The IVA Protocol points to typical suitability at around £7,000 and above across multiple debts, and most practitioners work to something similar, because below that the fees consume too much of what creditors would receive. Below that level, negotiating directly, a Debt Management Plan, or a Debt Relief Order are usually better answers.
Can I get an IVA on benefits?
It is possible but uncommon, and you should look hard at a Debt Relief Order first. Benefits income can support an IVA where there is genuine surplus and assets to protect — for example a homeowner on a low income. But if you are DRO-eligible, a DRO costs nothing, lasts one year instead of five, and writes off the qualifying debt. An adviser who steers you past that towards a fee-paying IVA is not acting in your interests.
Related guides
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