Who Qualifies for an IVA in 2026?
Understand the core eligibility criteria for an Individual Voluntary Arrangement in England, Wales, and Northern Ireland, and find out if it's the right path to write off your unaffordable debt.
Check Your Eligibility FreeThe Core IVA Requirements
When considering debt solutions, it's essential to understand that an Individual Voluntary Arrangement (IVA) is a formal, legally-binding agreement governed by the Insolvency Act 1986 (Part VIII). Not everyone is eligible; you must meet specific criteria set out by Insolvency Practitioners to ensure the arrangement is fair to both you and your creditors. It's often recommended to read about the IVA explained fully before proceeding.
1. Debt Level
Legally, there is no statutory minimum debt threshold to enter an IVA. However, practically, Insolvency Practitioners usually require at least £6,000 to £10,000 to make the arrangement viable given their fee structures.
2. Number & Approval of Creditors
You must owe money to at least two different creditors. Crucially, the IVA requires 75% approval by the value of the creditors who choose to vote at your meeting.
3. Regular Income
You must have a stable income (which can include employment, benefits, pension, or self-employment) and afford sustainable monthly payments (typically £80+) after essential living costs.
Further Eligibility Restrictions
There are other strict rules governing who can apply. For example, your residency matters. IVAs are available to residents of England, Wales, and Northern Ireland. If you live in Scotland, you would need to explore alternative options like Protected Trust Deeds instead.
Additionally, you cannot enter an IVA if you are already subject to another formal insolvency procedure. This means you cannot currently be in another active IVA, an active Debt Relief Order (DRO), or be an undischarged bankrupt. Comparing options like bankruptcy explained is a good idea if your situation is complex.
What Counts as Unsecured Debt?
An IVA only covers unsecured debts. These are debts not tied to an asset (like your home or car). Eligible debts include:
- Credit Cards & Store Cards: Any balances on standard credit accounts.
- Personal Loans: Unsecured bank loans and payday loans.
- Overdrafts: Balances owed on your current accounts.
- Catalogue Debts: Money owed for goods bought via catalogues.
- Certain Utility & Tax Arrears: Gas, electricity, and water arrears, as well as HMRC tax debts or Council Tax arrears can often be included.
Note: Secured debts (mortgages, car finance on HP/PCP), child support, student loans, and court fines cannot be included.
How to Check Your Eligibility
Finding out if you qualify is simple and will not impact your credit score. Here is the typical process:
Use an Online Calculator
Start by using our free IVA checker tool. It takes less than 2 minutes to provide basic details about your debt and income to get an initial assessment.
Assess Your Budget
Use our Budget Balancer to accurately calculate your monthly disposable income. This proves you have the funds needed for an IVA payment after essential bills.
Speak with an Advisor
If you meet the criteria, reach out for free debt advice from a regulated professional to confirm it's your best option.
Not Sure If You Qualify?
Our full assessment tool can review your unique financial situation and recommend the best path forward, comparing all statutory and informal options.
What If I Don't Qualify?
If an IVA isn't suitable—perhaps because your disposable income is too low or your debt is below the practical threshold—there are still powerful options available.
You might consider a Debt Management Plan (DMP) for a flexible, informal repayment strategy. Alternatively, if you have very low income and few assets, a Debt Relief Order (DRO) might be the perfect solution. You can compare all these options on our IVA alternatives page.
We also highly recommend reviewing the IVA pros and cons before making any final commitments to ensure you understand both the benefits and the strict legal obligations.