IVA help for England, Wales and Northern Ireland
Struggling with debt? Find out if an IVA is right for you.
An individual voluntary arrangement lets you pay what you can afford for a set time, usually five years. When it ends successfully, the rest of the debt it covers is written off. It is not right for everyone, so we explain the alternatives too.
- Takes about 3 minutes
- Confidential, no obligation
- Or call free on 0800 494 7285
We are an introduction service: we can put you in touch with a licensed insolvency practitioner or another debt solution provider. How we work
Start with what matters to you
What is worrying you most?
Most people do not start with "IVA". They start with the thing they are afraid of losing. Pick one and we will answer it straight.
- My home Whether you have to sell, and what happens to equity.
- My car Keeping a car you need, and what happens to car finance.
- My job Whether your employer will find out, and jobs that are affected.
- My partner What an IVA means for a partner, spouse or joint accounts.
- My credit rating How long an IVA shows on your credit file, and rebuilding after.
- A letter from a debt collector Find the firm on your letter, what it means and what to do.
- Bailiffs What bailiffs can and cannot do, and how to stop them.
- How I am feeling Debt and mental health, and where to get support.
How an IVA works
From first call to debt free, step by step
An IVA is a legally binding agreement under the Insolvency Act 1986. Here is what actually happens.
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Tell us about your situation
Answer a few questions about your debts, income and home. With your agreement, we pass your details to a licensed insolvency practitioner who can assess you.
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An insolvency practitioner assesses you
Only a licensed insolvency practitioner can set up an IVA. They go through your income and spending in detail, check whether an IVA is suitable, and must give you a key facts document before you sign anything.
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Your creditors vote
The proposal goes to the people you owe. It is approved if creditors holding at least 75% of the debt, among those who vote, agree. They can also ask for changes or reject it.
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You make one monthly payment
Once approved, creditors bound by the IVA cannot take further action to recover the debts in it, and interest is frozen. You pay the practitioner, who shares it out.
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The rest is written off
If you keep to the terms until the end, usually five or six years, the debt left over in the IVA is written off.
Is an IVA right for you?
An IVA suits some people, and not others
An insolvency practitioner will look at your whole situation. As a rough guide, these are the things that usually decide it.
It may suit you if
- You live in England, Wales or Northern Ireland
- You owe money to two or more creditors
- You have a regular income and some money left after essential bills
- You cannot realistically clear your debts within a few years
- You want to avoid bankruptcy, or keep your home
Something else may be better if
- You could repay in full with a bit more time (a debt management plan may be cheaper)
- You have very little spare income and few assets (a debt relief order may be free)
- Your debts are mainly secured, student loans, court fines or child maintenance
- Your income is likely to fall sharply in the next few years
The downsides you should know about
- It stays on your credit file for six years and appears on a public register while it runs.
- Fees are taken from your payments, so less goes to your creditors.
- If your share of equity in your home is £10,000 or more, a standard IVA usually lasts six years rather than five.
- Pay rises, bonuses and windfalls usually have to go into the IVA.
- If it fails, you still owe what is left, and your practitioner can apply to make you bankrupt.
Your options
An IVA is one option. Here are the others.
The right solution depends on how much you owe, what you can afford, and whether you own your home. Some are free. Compare them before you decide.
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IVA
Individual voluntary arrangement
People with a regular income who can afford a monthly payment but cannot clear their debts in a reasonable time.
- How long
- Usually 5 years, sometimes 6
- Legally binding
- Yes, once creditors approve it
- Cost to you
- Fees are taken from your monthly payments
- Debt written off
- Yes, what is left at the end
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DMP
Debt management plan
People who can repay everything in full eventually, just more slowly.
- How long
- Until the debt is repaid
- Legally binding
- No, it is informal
- Cost to you
- Free from debt charities
- Debt written off
- No
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DRO
Debt relief order
People with little spare income, few assets and debts up to £50,000 (England and Wales).
- How long
- 12 months
- Legally binding
- Yes
- Cost to you
- Free to apply
- Debt written off
- Yes, at the end of the 12 months
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Bankruptcy
Bankruptcy
People who cannot realistically repay and would rather deal with it quickly.
- How long
- Usually 12 months, with up to 3 years of payments
- Legally binding
- Yes
- Cost to you
- £680 application fee in England and Wales
- Debt written off
- Yes, most debts
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Breathing Space
Breathing Space
Anyone in England or Wales who needs time to get advice and choose a solution.
- How long
- 60 days (longer in a mental health crisis)
- Legally binding
- Pauses most enforcement and interest
- Cost to you
- Free, through a debt adviser
- Debt written off
- No, it is a pause
Figures for England and Wales, checked September 2026. Scotland and Northern Ireland have different rules: see debt solutions in Scotland. Compare every option in detail.
Types of debt
Worried about a particular debt?
Some debts come first, and some cannot go into an IVA at all. Pick yours to see what can happen and what you can do.
- Council tax arrears
- What is a council tax liability order
- What to do about rent arrears
- Gas, electricity and water debt
- Credit card debt
- Payday loan debt
- Klarna and buy now pay later debt
- Catalogue and store card debt
- Borrowed from a loan shark
- Owe HMRC money
- DWP Debt Management
- Universal Credit and benefit overpayments
- Unpaid magistrates' court fines
- Student loan debt
- Gambling debt
- Business and self-employed debt
- What happens to debt when someone dies
Guides
Straight answers to the questions people ask
IVAs explained
- What is an IVA?
- How does an IVA work?
- Who qualifies for an IVA?
- What debts can and cannot go into an IVA?
- Does an IVA stop debt collectors and bailiffs?
- How to apply for an IVA
Life in an IVA
- How much does an IVA leave you to live on?
- Bank accounts, phone contracts and insurance in an IVA
- What happens to your home and belongings in an IVA?
- Can you get a mortgage with an IVA?
- Can you rent a home with an IVA?
- How does an IVA affect your credit rating?
Common questions about IVAs
Is an IVA a government scheme?
No. An IVA is a legal agreement between you and your creditors, set out in the Insolvency Act 1986 and supervised by a licensed insolvency practitioner. The law makes it binding once enough creditors agree, but it is not a government grant or scheme and no government body pays off your debt.
How much of my debt will be written off?
It depends on what you can afford and what your creditors accept, so there is no fixed amount. You pay a monthly amount for the length of the IVA, usually five years, and any remaining unsecured debt included in the IVA is written off if you complete it. Your insolvency practitioner will show you the figures before anything is agreed.
Does an IVA cost anything?
Yes. Insolvency practitioners charge fees for setting up and running an IVA. In most cases the fees come out of your monthly payments rather than being paid upfront, which means less goes to your creditors. You should be told the fees before you agree to anything. Free debt advice charities do not charge for advice.
Will I lose my home?
Not under a standard IVA. Under the IVA Protocol that applies to IVAs set up on standard terms since 1 July 2025, you are not asked to sell your home or release equity from it. If your share of the equity is £10,000 or more, the IVA usually lasts six years instead of five. IVAs agreed before July 2025, and non-standard IVAs, can have different terms.
Will an IVA affect my credit rating?
Yes. An IVA usually stays on your credit file for six years from the date it starts, and it will make borrowing harder during that time. Many people find their credit rating is already damaged by missed payments before they start one.
Can I get free help instead?
Yes. MoneyHelper, StepChange, Citizens Advice, National Debtline all give free, impartial debt advice and can help you choose between the options. IVA Helpline is an introduction service. If you would like help, an adviser calls you back and, with your agreement, introduces you to a licensed insolvency practitioner or the provider of another debt solution you choose.
See where you stand in 3 minutes
Answer a few questions about your debts and income. We will call you back to go through your answers and, if you want to explore an IVA, put you in touch with a licensed insolvency practitioner.
Free, confidential and no obligation. IVA Helpline is an introduction service. If you would like help, an adviser calls you back and, with your agreement, introduces you to a licensed insolvency practitioner or the provider of another debt solution you choose.
