Individual Voluntary Arrangement (IVA) UK
A legally binding agreement to repay a portion of your debts over five years, with the rest written off at the end. Private, and avoids the formal bankruptcy restrictions — but fees are higher.
Debtrupt's UK bankruptcy filing tools are designed for residents of England & Wales. If you live in Scotland, see Sequestration; in Northern Ireland, contact Debt NI — and speak to a local adviser before relying on any output here.
What is an IVA?
An Individual Voluntary Arrangement (IVA) is a legally binding agreement between you and your creditors to repay part of what you owe, usually over five years (60 months). It is supervised by a licensed Insolvency Practitioner (IP).
At the end of the arrangement, as long as you have kept to the terms, the remaining unsecured debts included in the IVA are written off. It is private (not advertised like bankruptcy) and avoids the formal bankruptcy restrictions, such as the ban on acting as a company director.
Because it needs an IP and ongoing administration, an IVA costs more in fees than bankruptcy — and you must be able to maintain monthly payments for the full term. If the IVA fails, you could still be made bankrupt.
Eligibility criteria
Indicative criteria for an IVA in England & Wales.
- Unsecured debts usually £10,000 or more
- A reliable monthly surplus of around £100+ to fund payments
- Two or more debts, usually with at least two creditors
- Resident in England, Wales or Northern Ireland
- Able to commit to roughly five years of payments
- Willing to release property equity near the end if you own a home
An IVA vs bankruptcy
How an IVA compares to bankruptcy, side by side.
- Private — not advertised like bankruptcy
- You usually keep your home (may need to release equity later)
- No bankruptcy restrictions — you can remain a company director
- A predictable fixed monthly payment over a set term
- Interest and charges are frozen once approved
- Lasts about 5 years vs bankruptcy's 12-month discharge
- Higher fees paid to the Insolvency Practitioner
- You must maintain payments — failure can lead to bankruptcy
- Your home can still be at risk if there is equity to release
- Strict — you cannot usually take on new credit during the IVA
an IVA — your questions
Is an IVA better than bankruptcy?
It depends. An IVA suits people with a steady surplus income and assets (especially a home) to protect, and lasts about five years. Bankruptcy suits those with little surplus and few assets, and discharges most debts in 12 months. Compare both against your own numbers.
How much debt do you need for an IVA?
Usually £10,000 or more in unsecured debts, with two or more creditors and a reliable monthly surplus of around £100+ to fund the payments. There is no legal minimum, but creditors are unlikely to agree an IVA for very small debts.
Can I keep my house in an IVA?
Yes — you generally keep your home, though you may be asked to remortgage or release equity near the end of the arrangement. Bankruptcy can put a home with significant equity at risk of sale, so an IVA is often chosen to protect property.
How long does an IVA last?
Typically five years (60 months). It can extend if you miss payments or need a sixth year to release property equity instead of paying a lump sum.
What happens if I miss IVA payments?
Your Insolvency Practitioner will work with you, but persistent missed payments can cause the IVA to fail — which can lead to bankruptcy. Tell your IP as soon as you are struggling so the terms can be reviewed.
Not sure which fits you?
Run our free surplus calculator, then compare all four options side by side.
See if an IVA is right for you
Our free assessment takes 5 minutes, needs no paperwork, and shows your best route out of debt — private and with no judgement.