Skip to content
Check my options
All debt solutionsIVADebt Management PlanDebt Relief OrderBankruptcyBreathing SpaceFull and final settlementProtected Trust DeedDebt Arrangement Scheme
All types of debtCredit card debtCouncil tax arrearsPersonal loansEnergy arrearsOverdraftsRent arrearsHMRC debtBuy Now Pay Later
All compareIVA vs DMPIVA vs DROIVA vs bankruptcyDMP vs DRODMP vs bankruptcyDRO vs bankruptcy
All toolsSolution comparisonMy Debt MapBudget calculatorCouncil finderDebt glossaryUK insolvency tracker
All urgent helpBailiff at the doorCouncil tax summonsCourt letter or claim formEviction threatEnergy disconnectionWages being deductedCan't afford foodCreditor threats
All local helpEnglandScotlandWalesNorthern IrelandWest MidlandsBirminghamWolverhamptonAll locations
Debt glossary How we make money
Check my options

Minimum debt for an IVA: the honest answer

There is no legal minimum. There is a practical one, and it comes from arithmetic rather than regulation.

Written by The My Debt Cleared editorial teamLast reviewed 23 August 2026Jurisdiction England, Wales & Northern IrelandEditorial policy
No statute sets a minimum debt for an IVA. In practice, the 2025 IVA Protocol frames typical suitability around multiple debts totalling roughly £7,000 or more, because below that level the arrangement’s fees consume too much of what you pay in for creditors to sensibly approve it — and simpler routes usually fit better.

Why a practical floor exists

An IVA has professional costs, paid from within your contributions. On a small debt those fees become a large share of every pound you pay, creditors receive little, and the proposal fails on its own arithmetic — creditors holding 75% by value of the votes have to see the point of it. The IVA calculator makes this visible: set a small debt and a modest payment and watch how the totals behave.

If your debt is below it

Smaller debts usually point at different routes: a Debt Relief Order where the criteria fit, a Debt Management Plan, negotiated repayment, or a full and final settlement if a lump sum exists. Which of those fits is exactly the assessment an authorised adviser exists to make.

Related: the full criteria and where the fees actually go.

Check my options — about 60 seconds