What Is the Minimum Monthly Payment for an IVA?

What Is the Minimum IVA Payment?

There’s no legal minimum. As a rough guide, IVAs are usually considered where you can afford around £100 a month after essential costs.

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.

Your IVA payment is based on what you can afford, not a fixed amount. But creditors need the IVA to give them a better return than the alternatives, so a very small payment may not be enough.

The short answer

There’s no legal minimum IVA payment.
As a rough guide, IVAs are usually considered from around £100 a month.
Fees come out of your payments, so a very low payment leaves little for creditors.
If you can afford very little, a DRO or bankruptcy may be more suitable.
Your payment is reviewed every year.

Why do creditors need a meaningful payment?

Creditors vote for an IVA if they think it gives them a better return than bankruptcy. Because fees are taken from your payments, a very small payment over five years may leave little after costs. That’s why IVAs are usually considered where there’s a regular amount to pay.

How is my payment worked out?

It’s your take-home income minus essential household costs. See IVA payments explained and IVA living expenses.

What if I can only afford a little?

A DRO is designed for people with less than £75 a month spare. Bankruptcy is another option. A debt management plan can work with low payments, though it doesn’t write off debt.

Common questions

Can I get an IVA for £50 a month?

It’s less likely. Creditors may not accept a payment that low once fees are taken. A DRO or bankruptcy may be more suitable.

Is a bigger IVA payment better?

Only if it’s affordable. An IVA set too high is more likely to fail.

Can my IVA payment go down?

Yes, if your circumstances change. See IVA variations.

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.