Is an IVA a good idea?
This guide covers England and Wales
The short answer
It depends on the person. An IVA has points many people find helpful and points that need weighing up. We do not know your money, so we cannot say if it is right for you.
Free debt advice can look at your own case and explain every option. This page sets out facts from official sources only.
Last checked against Insolvency Service: IVA protocol key facts (for people thinking of an IVA) on 30 October 2026.
Checked Sources
Editorial responsibility: IVAs & Bankruptcy — how we check and correct information.
What people may find helpful
These points come from the Insolvency Service key facts and GOV.UK.
- Creditors generally stop asking for payment once the IVA starts, though they may still send statements.
- You make one regular payment, based on what is left after your income and outgoings are counted.
- You do not have to sell your home or use its equity to pay for the IVA.
- GOV.UK says you may be able to keep running a business.
- When all payments are made you get a certificate of completion, and you no longer owe the debts included.
What to weigh up
These are the costs and limits that official sources describe.
- It lasts 5 years, or 6 years if your home equity is £10,000 or more.
- Fees are built into your monthly payments. Early payments cover more of the fees than of the debts.
- It appears on your credit file for 6 years, which can make borrowing harder.
- It is listed on the public Individual Insolvency Register while it runs.
- Your finances are reviewed each year, and payments can go up or down. Windfalls or an inheritance may need to be paid in.
- If payments are missed, the IVA can be cancelled. Creditors can then pursue you again, including for interest and charges that were frozen. GOV.UK says the practitioner may make you bankrupt.
- Debts you share with someone else are different. Creditors can still go after the other person.
What an IVA is not
An IVA is not a way to avoid repaying. You repay all or part of your debts. It is also not the same as an informal plan, which creditors can refuse.
It is not the only option. Others include a Debt Management Plan, a Debt Relief Order and bankruptcy, each with different rules.
Where to talk it through
Free, regulated debt advice is available through MoneyHelper's debt advice finder, and from charities such as StepChange and National Debtline.
What to do next
Free, independent debt advice
These services are free. They will not judge you, and they can look at your whole situation.
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Call free: 0800 138 1111 (number checked on their website on 24 October 2026)
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Related guides
- IVA pros and cons: benefits and risksA balanced look at what an IVA can do and what can go wrong, including what happens if you cannot keep up your payments.
- What does an IVA cost? Fees explainedHow IVA fees work in England and Wales, why early payments go mostly on fees, and the questions to ask before you agree to anything.
- IVA or DRO: the main differencesA side-by-side look at an IVA and a Debt Relief Order in England and Wales: who can have each, cost, length and the rules. We do not pick a winner.