Who qualifies for an IVA?

Eligibility for an IVA is not a checklist set in law. It is a judgement that an insolvency practitioner makes, and your creditors then test by voting. The real question is whether you could keep up a fair monthly payment for five or six years, and whether an IVA would give your creditors more than the alternatives.

Is there a minimum debt for an IVA?

No. Neither the Insolvency Act 1986 nor the rules under it set a minimum debt, and Citizens Advice confirms there is no minimum or maximum. What you will see online are guideline figures from different sources.

The reason debt size matters is fees. Citizens Advice says an IVA is possible if you owe less than £10,000, but the fees are high. With smaller debts, fees can take a large share of everything you pay in.

How much spare income do you need?

Again, no legal minimum. Citizens Advice says you will usually need at least £100 a month left over after essential costs. The IVA Protocol says an IVA is unlikely to be suitable for people with very low disposable income, and if one is proposed anyway, the proposal must explain why.

For example, if you could afford £80 a month for 60 months, you would pay £4,800 in total. Citizens Advice says IVA fees are around £5,000 on average. Fees vary, but you can see how little might reach your creditors. (Hypothetical figures.)

Your spare income is worked out using the Standard Financial Statement, covering your whole household where appropriate. The payment has to be one you can sustain for the full term without hardship. If an adviser’s figures only work because your food or travel budget has been squeezed, that is a warning sign.

Does your income need to come from work?

It needs to be regular and sustainable. The IVA Protocol says a suitable person will usually have an income other than state benefits or the state pension. If your income is mainly benefits or state pension, a protocol IVA is unlikely to be suitable, and a proposal would need to explain why it was still the best option.

Benefits you do receive are counted as income. If you get disability or carer’s benefits, the costs they relate to must be included in your spending.

What does the IVA Protocol say about who is suitable?

The IVA Protocol 2025 sets out the profile of someone a standard (protocol) IVA usually suits, and the situations where it usually does not.

Being in the right-hand column does not make an IVA impossible. It means a standard protocol IVA is unlikely to fit, and a bespoke IVA or a different solution may be considered. The Protocol says people in that position should be directed to free, regulated debt advice.

When is something else usually a better fit?

The two most common cases:

• You could get a debt relief order. A DRO costs nothing to apply for, usually lasts 12 months, and is for people with debts under £50,000, less than £75 a month spare, assets under £2,000 and a vehicle worth under £4,000. The Protocol says people who meet those criteria are unlikely to be suitable for an IVA. Compare them in IVA or debt relief order?.
• A debt management plan would repay your debts in a similar time. A DMP is informal and not legally binding, but it can be set up free of charge through StepChange, PayPlan or National Debtline’s partner, and it is not a form of insolvency.

Can you get an IVA if you live in Scotland?

No. IVAs are available in England, Wales and Northern Ireland only. Scotland has its own debt solutions under separate law, including the protected trust deed and the Debt Arrangement Scheme. See debt solutions in Scotland.

Homeowners, renters, couples and other common situations

• Homeowners: yes, you can get an IVA. Under the 2025 Protocol you will not be asked to sell or release equity, but if your share of the equity is £10,000 or more the IVA lasts 72 months instead of 60.
• Renters: yes. Your rent is part of your essential costs. Rent arrears usually cannot be included, so keep paying your landlord.
• Couples: each person has their own IVA. Two people with joint debts can propose linked (“interlocking”) IVAs, with each person’s share of a jointly owned home assessed separately. See joint IVAs.
• Self-employed: possible, but sole traders with trade debts are unlikely to suit a standard protocol IVA, so a bespoke IVA may be needed.
• County court judgments: a CCJ does not rule you out, and the debt behind it can normally be included in the IVA. See CCJs and IVAs.
• Mostly tax debts: Citizens Advice says an IVA might not be right if most of your debt is owed to HMRC, because HMRC often will not agree.

What people get wrong about qualifying

• “The minimum debt for an IVA is £5,000 (or £6,000, or £10,000).” None of these is a legal rule.
• “If a firm says I qualify, I qualify.” Your creditors decide, by vote. And qualifying is not the same as an IVA being suitable: Insolvency Service research on IVAs that later failed found 60% showed evidence of poor practice early on, such as inaccurate budgets or other solutions being wrongly dismissed.
• “I’m on benefits, so an IVA is my only option.” If you have little spare income and few assets, a debt relief order or other route is often a closer fit.
• “Being turned down means I have no options.” It does not. Debt management plans, debt relief orders and bankruptcy all work differently.

What to do next

1. Get free, impartial advice from MoneyHelper, StepChange, Citizens Advice or National Debtline. They can check you against every option, not just an IVA. See where to get free debt advice.
2. Write down your debts, your household income and your essential spending. You will need all three whoever you speak to.
3. If you still want to explore an IVA, read how to apply for an IVA and the other guides on our IVAs explained page.