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Find out if an IVA is right for you

IVA and your income

The details of an IVA (Individual Voluntary Arrangement) vary on a case by case basis. There are many factors affecting whether or not an IVA will go ahead, and of course whether it will be a success if it does. Your income is always going to be one of the major factors in what happens with an IVA.

IVA Payments

In order to have an IVA accepted you will have to show that you have enough income to make the required payments. Your Insolvency Practitioner (IP) will help you to establish whether this is the case, and will advise you about your options. If your income is limited, you may be able to consider using income from assets or releasing equity from property that you own. In some cases debtors may be able to secure funds from a third party to put towards their IVA proposal.

IVA and Your income

Your IP will consider your income, outgoings and debts before advising you about whether an IVA is going to be a good option for you. As well as managing to make your IVA payments, you must be able to sustain a good standard of living for yourself and your family (if applicable).

IVAs are most likely to go ahead for people who have reliable long-term income, for example from employment. Typically an IVA will involve paying at least £200 a month, and so if your income does not make this possible the chances of a successful IVA will be reduced.


Once your IVA is up and running, the IP responsible for supervising it will monitor its progress. If your income changes, your IP may want to make changes to the IVA payments.

If your income or financial state deteriorates, the IP may be able to take steps to prevent the failure of the IVA, perhaps by reducing payments and adding to the overall term, or by setting up a payment holiday.

If your income improves, there is always a chance that the IP will recommend that you increase the amount that you are paying toward the IVA. No one can tell what state your finances are going to be in as the IVA progresses, and so you need to be prepared for these flexibilities in the agreement.

Income is not the only factor affecting an IVA, but it is certainly a major influence. Whether or not an IVA is accepted will depend partly on income, as will your ability to maintain the payment plan.

Fees and key info

We are happy to provide you with debt advice only. We only charge a fee if you opt for one of our debt solutions. Fees will depend on which debt solution we provide and what your personal circumstances are. All fees will be discussed prior to commencement of any service or debt repayment plan. Click here to read our fees and key info. Please note: From time to time we may refer you to other services providers or charities such as the CAB.


If you’d like more information on other sources of free debt help and advice you can visit MoneyHelper – an organisation, backed by government and set up to offer free and impartial advice to those in debt. - Click here to visit MoneyHelper