Find out if you qualify with a free IVA eligibility check
The quickest way to know whether you qualify for an IVA is to talk it through with someone who understands the criteria. IndividualVoluntaryArrangements.net offers a free eligibility check by phone or email. We look at how much you owe, how many creditors you have, your income and your essential spending, and give you a clear answer on whether an IVA is realistic for you.
Sending an enquiry doesn't involve a credit check, and there's no obligation to go ahead. If you're unlikely to qualify, we'll explain why and what you could do instead.
What we'll ask you about
- Roughly how much you owe and who to
- Your take-home income, including any benefits
- Your housing costs and other essential bills
You may be eligible for an IVA if you live in England, Wales or Northern Ireland, owe money to at least two creditors, and have enough regular income to make a monthly contribution after your essential living costs.
Typical IVA criteria
- Where you live: you live in England, Wales or Northern Ireland (or have a sufficient connection there).
- Level of debt: you usually owe around £7,000 to £10,000 or more in unsecured debt. There's no legal minimum, but below this level an IVA is rarely cost-effective.
- Number of creditors: you usually owe money to two or more creditors.
- Regular income: you have a stable income from employment, self-employment, a pension or a mix of sources, including some benefits.
- Affordable surplus: after essential costs you can afford a regular monthly contribution, often at least around £80 to £100.
- Can't repay in full: you can't realistically repay what you owe in full within a reasonable time.
When an IVA may not be suitable
- Your debts are low or you could clear them in a few years with an informal plan. A Debt Management Plan may be better.
- You have very little or no spare income. A Debt Relief Order or bankruptcy may be more appropriate.
- Your income is very unstable and you can't commit to a five-year plan with confidence.
- Most of your debt can't be included, such as student loans, court fines or secured debts.
- You live in Scotland, where IVAs aren't available. Look at a Protected Trust Deed instead.
Can I get an IVA if I'm…
Self-employed?
Yes. Self-employed people can get an IVA, and it can allow you to keep trading. Your contribution will be based on your average profits, and you'll need to provide accounts or records of your income.
On benefits?
Possibly. Some people receiving benefits can get an IVA if their total household income leaves an affordable surplus. If benefits are your only income, other solutions are often more suitable.
A homeowner?
Yes. Many people choose an IVA specifically because they own a home. You may be asked to release equity towards the end of the IVA. Read IVAs and your home.
A tenant?
Yes. Renting doesn't stop you getting an IVA, and your rent is included in your budget as an essential cost.
In a couple?
An IVA is for an individual, but if you and your partner both have debts, it may be possible to set up linked or joint IVAs. Only debts in your name (or joint debts) can be included in your IVA.
Previously bankrupt or had an IVA before?
It may still be possible, but creditors will look closely at your history. You'll need to explain what has changed.
How is my monthly payment worked out?
Your Insolvency Practitioner will put together a budget using your take-home income and your essential costs, such as rent or mortgage, council tax, utilities, food, travel and childcare. Industry spending guidelines, such as the Standard Financial Statement, are used to make sure your budget is realistic. What's left is usually what you'll pay into your IVA.
Want a rough idea? Try our IVA calculator.
Eligibility isn't guaranteed. Even if you meet the typical criteria, an IVA depends on your creditors agreeing to your proposal. A good adviser will tell you if another option is likely to be better for you.
Common reasons an IVA isn't suitable
We'd rather tell you early if an IVA is unlikely to work than let you find out partway through. These are the most common reasons an IVA isn't the right fit:
- Too little spare income. If there's very little left after essential bills, creditors are unlikely to accept a proposal, and a Debt Relief Order may suit you better.
- Debts that are too small. If you could clear what you owe within a few years at a reduced rate, the cost and commitment of an IVA may not be worth it.
- Debts that can't be included. If most of what you owe is student loans, secured borrowing or court fines, an IVA won't solve the problem.
- Very unpredictable income. A five-year commitment needs a fairly steady income.
- Recent heavy borrowing. Creditors may object if a lot of the debt was taken on very recently.
What happens if you don't qualify?
Not qualifying for an IVA doesn't mean there's nothing that can be done. If your income is low and you rent, a Debt Relief Order could write off your debts in twelve months with no fee. If you could repay in full over time, a Debt Management Plan can reduce your payments, and free providers are available. If neither fits, bankruptcy may be the most realistic route. We'll explain which of these applies to you and where to get free help with it.
Does a previous IVA or bankruptcy affect eligibility?
Having had an IVA or bankruptcy in the past doesn't automatically rule you out, but creditors will want to understand what happened and why things will be different this time. If a previous IVA failed, be ready to explain the reasons, such as a job loss or illness, and what has changed since. If you're currently in another formal insolvency, a new IVA usually isn't possible until that has ended.
Get a quick answer on eligibility
Our eligibility check is free and takes a single conversation. Fill in the form at the top of the page, and we'll contact you at the time you choose. If you'd like a rough idea first, try the IVA calculator, then bring your figures along when we speak.