Remortgaging
When you set up an IVA as a homeowner, the value of your property is taken into account when your monthly payment plan is devised.
Under the IVA Protocol 2025, most new Protocol IVAs no longer require you to remortgage or release equity from your home. Instead, your insolvency practitioner will assess how much your beneficial interest in the property is worth when your IVA is proposed.
If it's worth £10,000 or more, your IVA will typically run for 72 months rather than the standard 60. If it's worth less than £10,000, your IVA will usually last 60 months.
Bespoke or older IVA arrangements may still have different terms, so it's worth checking with your IP if you're unsure which applies to you.
For bespoke or older IVA arrangements where remortgaging is still required, there's usually an upper limit on how much cash can be raised and put towards repayments, depending on your property's value and the size of your existing mortgage.
Whatever your circumstances, you will not be required to sell your property as part of an IVA.
Will I be able to keep my home out of my IVA?
Your home is not transferred into an IVA in the same way that assets may be dealt with in bankruptcy. However, if you own a property, the equity you have in it will normally be considered when your IVA is proposed.
Your insolvency practitioner will assess your circumstances and explain how your property may affect your agreement before you enter into an IVA.
Your assets
There is no official requirement for any of your assets to be included in your IVA. However, your insolvency practitioner (IP) may advise you to sell off possessions with a decent resale value to raise extra cash towards your repayments. Unlike bankruptcy, an IVA does not automatically mean your assets are sold. However, your insolvency practitioner will review your assets when preparing your IVA proposal, and some valuable assets may need to be considered as part of your agreement.
Everyday items needed for normal living, such as clothing, furniture and household equipment, are not normally affected.
There is also no specific asset requirement you need to meet to be eligible for an IVA in the first place. You can choose to sell assets outside your IVA and use the money for living costs, or sell them within your IVA and put the proceeds towards your monthly repayments.
Are you eligible for an IVA? Income requirements
Not everyone experiencing financial difficulty is eligible for an IVA, and it's worth checking you meet the requirements, and that an IVA is genuinely the right debt solution for you, before you go ahead.
Disposable income
There is no set minimum disposable income required by law to qualify for an IVA. However, creditors usually expect your IVA payment to be affordable and meaningful. Many IVAs are proposed with around £100 or more per month available after essential living costs, but the amount will depend on your individual circumstances. It's unlikely your proposal will be accepted below this level. If you're close to this threshold, your IP can advise on steps to increase it, and if your circumstances change later, you may be able to adjust how you make repayments, for example by paying a lump sum raised from selling an asset.
Secure income
IVAs are best suited to people with a steady, reliable income each month, since they're designed as a long-term solution requiring fixed, regular repayments. If your income varies significantly month to month, an IVA might not be the right fit, since it will be harder to judge whether you can stick to the repayment schedule. Before setting one up, it's worth drawing up a monthly budget: take your living costs, such as food and energy bills, away from your income to see exactly how much disposable income you have to work with.
What if my financial situation improves during my IVA?
Any changes to your financial situation during your IVA must be reported to your insolvency practitioner. You must keep your insolvency practitioner informed about significant changes to your financial circumstances during your IVA. This may include increases in income, receiving a windfall, or changes to your household situation.
If your circumstances improve, your IVA payments may be reviewed and could increase depending on the terms of your agreement.
If you find yourself with more money available than you had when you started the IVA, your payment plan is likely to be adjusted accordingly. Most IVAs also include a windfall clause, meaning any large sum you come into unexpectedly, such as an inheritance, lottery win, or work bonus, must be used, at least in part, towards your repayments.
Your bank accounts
If you're setting up an IVA, you may need to make some changes to your bank account. Banks have a legal right to offset, which allows them to automatically take money from an account to cover a debt if that account is directly linked to one of your lenders.
If your bank is one of your creditors, or is linked to one, you need to move your money to an account they cannot reach. If you already have an insolvency practitioner, speak to them before setting up your IVA about which accounts are accessible to your lenders. Any savings or significant funds you hold may be taken into account when your IVA is prepared. Your insolvency practitioner will advise whether these need to be used towards your debts or whether they can be retained.
Your pension
State pension
If you receive a state pension, it will usually be treated as income when your IVA affordability is assessed.
Personal and workplace pensions
If your personal or work pension is already paying out, this income must also go towards your repayments, and any lump sum you receive will be taken into account too. If you are paying into a pension, your contributions may be reviewed as part of your income and expenditure assessment. Creditors will generally consider whether your pension contributions are reasonable and affordable based on your circumstances.
Your job
In most circumstances, your employment won't be affected by your IVA. However, some professions, such as law and accountancy, are bound by codes of conduct that forbid members from entering an IVA or declaring bankruptcy. If you think this might apply to you, check your contract of employment to be sure.
Entering into an IVA may also appear on your credit file and the public Individual Insolvency Register while the IVA is active, which may be relevant for certain roles involving financial responsibility.