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IVA vs DMP
An IVA is a formal insolvency arrangement. A DMP is a repayment arrangement. Understanding that structural difference is an important first step.
| Feature | IVA | DMP |
|---|---|---|
| Legal structure | Formal insolvency arrangement. | Repayment arrangement, not the same formal insolvency process. |
| Administrator | Licensed insolvency practitioner. | May be self-managed or administered by a debt management provider. |
| Creditor position | Approved IVA binds creditors covered by it according to its terms. | Creditors retain underlying rights and may or may not agree to freeze interest or charges. |
| Length | Protocol IVA normally 60 months, subject to the Protocol and individual proposal. | Depends on the debt balance, payments, interest and creditor arrangements. |
The 2025 IVA Protocol says a consumer whose debts could be cleared under a DMP over a similar period, where the return to creditors would be significantly higher, is unlikely to be suitable for a Protocol IVA unless the proposal explains why the IVA is nevertheless appropriate.
Primary sources
- Insolvency Service: IVA Protocol 2025Primary or public authority source, checked 2 November 2026.
- MoneyHelper: Options for clearing your debtsPrimary or public authority source, checked 2 November 2026.
- FCA: Unauthorised or unsuitable debt advicePrimary or public authority source, checked 2 November 2026.