IVA on a Zero-Hours Contract or Variable Income

Can I Get an IVA on a Zero-Hours Contract?

Possibly. Your payment is usually based on your average income, and it needs to be affordable even in leaner months.

Last updated: November 2026

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Things to know about IVAs

An IVA is a formal insolvency procedure. It must be approved by your creditors, stays on your credit file for six years, fees are taken from your payments, and debts are only written off if you complete it. It isn’t right for everyone.

Read the key risks

Creditors must approve it. An IVA only goes ahead if creditors holding at least 75% of the debt that is voted agree. Your proposal can be rejected.
Credit file and public register. An IVA stays on your credit file for six years from the start date and is listed on the public Individual Insolvency Register while it runs. Getting credit will be harder.
Spending restrictions and annual reviews. You live on an agreed budget for the length of the IVA (usually 5–6 years). Your income and spending are reviewed each year, and your payment can go up.
Fees. Fees are taken from your monthly payments, so less of what you pay reaches your creditors. How IVA fees work.
Your home. Under the current IVA Protocol, your home isn’t included in the IVA and you won’t be asked to remortgage. If your share of the equity is £10,000 or more, the IVA usually lasts six years instead of five.
If it fails. If you can’t keep up payments the IVA may fail, you would owe the remaining debt again, and the supervisor may petition for your bankruptcy.
Write-off only on completion. Remaining qualifying unsecured debts are only written off if the IVA is completed successfully. Secured debts, court fines, child maintenance, student loans and some other debts can’t be included.
Other options may suit you better. A debt management plan, DRO or bankruptcy may be more suitable. IVAs are available in England, Wales and Northern Ireland only; different solutions apply in Scotland.

An IVA relies on regular payments over five or six years, so stable income helps. But plenty of people with zero-hours, agency, shift or seasonal work have IVAs.

The short answer

Variable income doesn’t rule you out of an IVA.
Your payment is usually based on average income over several months.
A cautious payment helps you cope with quieter months.
Tell your insolvency practitioner about big changes in hours.
If your income is very unpredictable, a DMP may be more flexible.

How is variable income assessed?

Your insolvency practitioner will usually look at several months of payslips and bank statements to find a realistic average. Creditors want to see that the payment can be kept up, not just met in a good month.

What if my hours drop?

Short dips can sometimes be covered by a payment break. If your income falls for good, a variation can reduce your payments. Don’t just miss payments.

What if my hours go up?

Your income is checked at each annual review. If it has risen, your payment may go up.

Are there better options?

A debt management plan is informal and can be changed more easily, but it doesn’t write off debt. If your income is low, a DRO may be worth looking at.

Common questions

Can agency workers get an IVA?

Yes, if their income is regular enough to support affordable monthly payments.

Will overtime increase my IVA payments?

Regular overtime counts as income and is reviewed each year. Occasional overtime may be treated differently. Check your IVA terms.

Can I get an IVA if I'm on a temporary contract?

Possibly, but creditors will want to know the income is likely to continue. Tell your adviser when the contract ends.

How IVA Advice Online can help

Every situation is different, and an IVA isn’t right for everyone. We can look at your income, spending and debts with you and set out the debt solutions you could qualify for, including options other than an IVA. To talk it through, get in touch.