Am I eligible for an IVA?

IVA Eligibility

To be considered for an Individual Voluntary Arrangement, you’ll generally need to meet the following criteria:

✅ You owe money to two or more creditors

✅ You have £7,000 or more in unsecured debt

✅ You live in England and Wales, or Northern Ireland

✅ You have a regular income and can afford to pay into an IVA each month (typically £80-£100+)

An Insolvency Practitioner will review your full financial situation before anything is confirmed.

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How much debt could I write off if I get an IVA?

Based on what you owe and what you can afford to pay into an IVA, our calculator gives you an idea of what your monthly repayment could look like and how much debt could be written off at the end.

Total Debt Owed

Estimated Monthly Payment

£6,000

You would repay

£30,000

Debt written off 83%

Check if You Qualify

This calculator is for illustration purposes and provides an example based on typical IVA terms. Your actual payment amount will depend on your individual circumstances, a detailed assessment of your income and expenses, creditor approval of your proposal, and annual reviews throughout your IVA. Debt write-off could be up to 73% and varies based on what you can afford to repay. Only a licensed Insolvency Practitioner can provide accurate figures specific to your situation. Fees apply.

What debts can be included in an IVA?

An IVA can only include unsecured debts, which are debts not tied to an asset like your home or car. If you owe money on any of the following, they can typically be included in the IVA:

Debts you CAN include:

Credit card debt
Personal loans
Overdrafts
Gambling debt
Payday loans
Store card debt
Catalogue debt
Utility bill arrears
Council tax arrears
HMRC debts (self-assessment tax, VAT, National Insurance)

Debts you CANNOT include:

The following are excluded from the IVA and must be paid separately:

Mortgages and secured loans
Student loans
Child maintenance and CSA arrears
Magistrates’ court fines
Debts arising from fraud

If you have secured debts like a mortgage, these stay outside your IVA. You carry on paying them as normal throughout the arrangement.

Could You Qualify for an IVA?

You might be eligible for an IVA if you:

Owe £7,000 or more in unsecured debt
Have regular income (employment, self-employment, pension)
Can afford making monthly payments
Have at least two creditors
Want legal protection & a clear path to becoming debt-free

Check if you qualify

Real IVA Example

Credit Cards	£13,500
Store Cards	£4,500
Personal Loan	£5,000
Overdraft	£3,000
Utility Bills	£1,500
Total Debt	£27,500

Your monthly debt repayments

£717

Monthly Saving: £580

£137

New (IVA)

Est. Debt Written Off: 70%*

*Debt write-off varies by individual circumstances and is subject to creditor approval.

Does my employment status affect my IVA eligibility?

It isn’t about where your income comes from, but whether you have enough coming in each month to pay into an IVA after essential living costs are covered.

Employed

The most straightforward situation. Your Insolvency Practitioner will use your payslips to calculate what you can afford each month.

Self-employed

You can still qualify for an IVA if you’re self-employed, but your income needs to be demonstrable. Your IP will look at your trading income, accounts, and any business debts separately.

Retired or on a Pension

Pension income counts towards IVA eligibility, provided it’s enough to meet the minimum monthly contribution after your essential costs.

On Benefits or Currently Unemployed

An IVA is unlikely to be suitable if your only income is from benefits or if you have no regular income at the moment. Without a consistent surplus each month, there’s nothing to fund the arrangement. Free debt advice is available from a licensed Insolvency Practitioner or debt adviser, who can review your situation and explain what options may be available to you.

What if I have a change in circumstances during an IVA?

If something changes during your arrangement, the most important thing is to let your Insolvency Practitioner know as early as possible.

Your Income Drops

If you can no longer afford your agreed monthly payment, your IP can negotiate a temporary reduction with your creditors or arrange a payment holiday while you get back on your feet.

You Lose Your Job

Redundancy doesn’t automatically end your IVA. Your IP will contact your creditors and work out a revised arrangement. If your situation changes significantly and permanently, we will discuss other options with you.

Your Income Increases

If your financial situation improves, creditors may ask you to increase the amount paid into the IVA. Your IP reviews your finances annually, and payments can be adjusted up or down as needed.

You Receive a Lump Sum

If you inherit money, win a prize, or receive a tax rebate during your IVA, you’ll typically be required to contribute any amount over £500 to the arrangement. Your IP will advise you on the specific terms of your IVA.

What could rule me out of an IVA?

The following situations would likely mean an IVA is not suitable:

❌ Your total unsecured debt is under £7,000

❌ You only have one creditor

❌ You have no regular income or no surplus after essential living costs

❌ You live in Scotland (Scotland has its own equivalent called a Protected Trust Deed)

❌ Your debts are all secured (mortgages, car finance, secured loans)

If an IVA isn’t right for your situation, a licensed Insolvency Practitioner or debt adviser can explain what other options may be worth looking at.

Will an IVA affect my credit rating?

An IVA will affect your credit rating for six years from the date it’s approved, not from the date it ends. This means that even after you complete your IVA, it will remain on your credit file for the remainder of that six-year period.

During this time, you may find it harder to access new credit or get a mortgage. However, many people find that their credit rating begins to recover once the IVA is complete and they’re starting fresh with no remaining unsecured debt.

The IVA will also appear on the public Individual Insolvency Register while it’s active. It’s removed from the register three months after the arrangement ends.

How do I find out if I qualify for an IVA?

To apply for an IVA, you need to work with a licensed Insolvency Practitioner. At NDH Financial, your initial consultation is with no obligation to proceed.

During the consultation, we’ll look at:

The total amount you owe, and who your creditors are
Your income and essential monthly outgoings
Any assets you hold, including property
Whether an IVA is right for your individual situation

There are no upfront costs. Insolvency Practitioners charge fees for setting up and managing an IVA, but these are built into your monthly payments – you don’t need to find any money before your arrangement is approved.

Deal with Your Debts Today

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Have More Questions? Our IVA Learning Hub Can Help

We know you might have questions and that's fine. We can answer most of those on our call.

But we've also built our learning hub so that you can learn more about an IVA and see if one is right for you.

Click below to check it out.

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