Is an IVA Right for Me?

It Depends on Your Circumstances

An IVA is a powerful debt solution — but it is not right for everyone. Whether it is the best option for you depends on the size of your debts, your income, your assets, your employment situation, and your personal priorities. This page helps you think through the key factors.

An IVA Is Likely a Good Fit If...

An IVA tends to be well-suited to people who:

• Have £6,000 or more in unsecured debt owed to at least two creditors
• Have a regular income that allows monthly contributions (typically £80–£100+ per month)
• Want to avoid bankruptcy and its restrictions
• Own a home they want to protect
• Work in a profession where bankruptcy could affect employment
• Want a structured, legally binding end to their debt within 5 years
• Are being harassed by creditors and want that to stop immediately

An IVA May Not Be Right If...

You might be better served by an alternative if:

• Your debts are under £6,000 — a DMP or DRO may be more appropriate
• You have no regular income — bankruptcy or a DRO may be more suitable
• Your debt is primarily secured (mortgage, car finance) — IVAs only cover unsecured debt
• You could realistically repay your debts in full within a few years — a DMP preserves your credit better
• You have very few assets and very low income — a DRO costs just £90 and writes off debts up to £30,000

Questions to Ask Yourself

When deciding, consider:

• Can I realistically make consistent monthly payments for 5 years?
• Am I comfortable with the IVA appearing on my credit file for 6 years?
• Do I have assets (home equity, savings) that could be better protected via an IVA than bankruptcy?
• Have I tried and failed with less formal debt solutions (DMPs, creditor negotiations)?