Individual Voluntary Arrangement (IVA)

An IVA is a formal agreement with creditors administered by an insolvency practitioner. It can be appropriate in some circumstances, but it is not a universal debt solution.

Reviewed 2 November 2026General information, not debt advice

An Individual Voluntary Arrangement, usually called an IVA, is a formal insolvency arrangement between an individual and their creditors. It is proposed and administered by a licensed insolvency practitioner.

What the current IVA Protocol says

The 2025 IVA Protocol is a voluntary standard framework for straightforward consumer IVAs. It says a Protocol IVA will normally run for 60 months, or 72 months where the consumer has a beneficial interest in a family home of £10,000 or more.

The Protocol says a person suitable for a Protocol IVA will, in most cases, have regular sustainable income other than State benefits or State pension, multiple debts totalling at least £7,000, uncomplicated assets, no ability to repay the debts in full within the proposed IVA period, and no eligibility for a Debt Relief Order.

Those are not a self-service eligibility test.

The Protocol requires the nominee to consider sustainability and the consumer's wider circumstances. It also says consumers who qualify for a DRO are unlikely to be suitable for a Protocol IVA.

Important consequences

An IVA is a formal insolvency procedure.
Fees are paid from the arrangement.
It can affect your credit record.
You have continuing duties to provide information and comply with the arrangement.
If it fails, creditors may again be able to pursue outstanding balances and interest or charges may have accrued.

Advice before an IVA

The 2025 Protocol requires nominees to identify the source of referrals. Where a third-party introducer is not FCA authorised for debt counselling, the consumer must be directed to obtain advice from someone who is FCA authorised.

That is one reason this site does not use a short questionnaire to tell people that an IVA is suitable for them.

Useful comparisons

IVA vs DRO and IVA vs DMP explain the structural differences without deciding which option you should choose.

Primary sources

Insolvency Service: IVA Protocol 2025Primary or public authority source, checked 2 November 2026.
GOV.UK: Options for dealing with your debtsPrimary or public authority source, checked 2 November 2026.
FCA: Unauthorised or unsuitable debt advicePrimary or public authority source, checked 2 November 2026.