An IVA is a formal insolvency procedure in England and Wales that lets you repay affordable amounts to creditors over a fixed term under the supervision of a licensed Insolvency Practitioner.

How much does an IVA cost?

Typical IVA fees often fall in the £3,600–£5,000 range for set-up and supervision combined, but exact costs depend on your case and the Insolvency Practitioner. Fees are usually paid from your monthly contributions rather than upfront.

How long does an IVA last?

Most IVAs last five to six years. If you are a homeowner, the term may be extended by twelve months instead of remortgaging to release equity, depending on the proposal.

Will an IVA affect my credit rating?

Yes. An IVA is recorded on your credit file and usually remains for six years from the date it is approved. After successful completion, the mark updates but historical records remain for the standard period.

Can I keep my home in an IVA?

Many people keep their home in an IVA if mortgage payments are maintained and equity is dealt with as the proposal requires. Outcomes depend on your equity, contributions and creditor approval.

Who can enter an IVA?

IVAs are generally for people in England, Wales or Northern Ireland with unmanageable unsecured debts, regular disposable income or assets, and creditors willing to approve the proposal via a licensed IP.

Service Hub

What is an IVA?

An Individual Voluntary Arrangement (IVA) is a formal, legally binding agreement between you and your creditors to repay debts over a fixed period, usually five to six years. Once approved, creditors cannot chase you for those debts, and any remaining eligible balance is typically written off at the end. An IVA is set up and supervised by a licensed Insolvency Practitioner.

In England and Wales, personal insolvency solutions include IVAs, bankruptcy and Debt Relief Orders. Different rules apply in Scotland and Northern Ireland.

Reviewed: 1 March 2026 by Editorial Team

In brief

Clear definition of the solution and who administers it.
Eligibility depends on debts, assets, income and location in the UK.
Costs and timescales vary — verify against GOV.UK and a regulated adviser.
Credit-file impacts typically last up to six years for formal solutions.
Free debt advice should be considered before committing to any product.

Next steps

Frequently asked questions

What is an IVA?: An IVA is a formal insolvency procedure in England and Wales that lets you repay affordable amounts to creditors over a fixed term under the supervision of a licensed Insolvency Practitioner.
How much does an IVA cost?: Typical IVA fees often fall in the £3,600–£5,000 range for set-up and supervision combined, but exact costs depend on your case and the Insolvency Practitioner. Fees are usually paid from your monthly contributions rather than upfront.
How long does an IVA last?: Most IVAs last five to six years. If you are a homeowner, the term may be extended by twelve months instead of remortgaging to release equity, depending on the proposal.
Will an IVA affect my credit rating?: Yes. An IVA is recorded on your credit file and usually remains for six years from the date it is approved. After successful completion, the mark updates but historical records remain for the standard period.
Can I keep my home in an IVA?: Many people keep their home in an IVA if mortgage payments are maintained and equity is dealt with as the proposal requires. Outcomes depend on your equity, contributions and creditor approval.
Who can enter an IVA?: IVAs are generally for people in England, Wales or Northern Ireland with unmanageable unsecured debts, regular disposable income or assets, and creditors willing to approve the proposal via a licensed IP.

Primary source: The Insolvency Service (GOV.UK)