Free UK debt information
IVA vs DRO
An IVA and a Debt Relief Order are both formal debt solutions, but their structures, eligibility rules and consequences are different.
| Feature | IVA | DRO |
|---|---|---|
| Type | Formal agreement with creditors administered by an insolvency practitioner. | Formal insolvency order for people meeting statutory criteria. |
| Typical duration | Protocol IVA normally 60 months, or 72 months in the home-equity circumstance described by the Protocol. | Normally 12 months. |
| Debt level | 2025 Protocol says a typical Protocol IVA case has combined debts of £7,000 or more. | GOV.UK currently says debts must be less than £50,000. |
| Spare income | Must be sustainable for the proposed arrangement. | GOV.UK currently says usually less than £75 per month. |
| Home ownership | Home ownership can be relevant and the Protocol contains home-equity rules. | You cannot own your home. |
| Application route | Through an insolvency practitioner. | Through an approved debt adviser. |
This comparison does not tell you which route is suitable.
Eligibility and suitability depend on details that a short comparison cannot safely assess.
Primary sources
- Insolvency Service: IVA Protocol 2025Primary or public authority source, checked 2 November 2026.
- GOV.UK: Debt Relief OrdersPrimary or public authority source, checked 2 November 2026.
- FCA: Unauthorised or unsuitable debt advicePrimary or public authority source, checked 2 November 2026.