Free IVA Calculator UK

An IVA typically costs between £3,000-£5,000 in total fees over the 60-month term. These fees cover IVA practitioner costs, administration, creditor negotiations, and ongoing support. You pay nothing upfront, all fees are taken from your monthly payments. Around 30-40% of your first year of payments goes to fees, with the rest going to creditors.

You typically pay back 25-40% of your total debt through an IVA over 60 months. The exact amount depends on your disposable income after essential expenses. If you owe £20,000 and pay £150/month for 60 months, you pay back £9,000 total (45%), with £11,000 (55%) written off. Monthly payments usually range from £100-£200 but vary based on what you can afford.

You need at least £5,000-£6,000 in unsecured debts to qualify for an IVA. Most IVA providers require a minimum of £6,000 debt to make the arrangement viable. There is no maximum debt limit, IVAs can handle debts of £10,000, £30,000, £50,000 or more. You also need at least £100 per month disposable income to make affordable IVA payments.

An IVA leaves you with enough to cover all essential living expenses including rent or mortgage, council tax, utilities, food, transport, insurance, and household costs. Your IVA payment is based on disposable income after these essentials. IVA practitioners use standard spending guidelines (based on StepChange and government benchmarks) to ensure you can afford to live comfortably. An IVA should never leave you struggling.

An IVA typically writes off 60-75% of your total debt. If you owe £20,000, you might pay back £6,000-£8,000 over 60 months and have £12,000-£14,000 (60-70%) written off. The exact write-off depends on your affordable monthly payment. There is no limit to how much debt can be written off, whether you owe £10,000 or £100,000, the remaining balance after 60 months is written off.

The minimum IVA payment is typically £100 per month, though some IVA providers may accept slightly less (£80-£90) in exceptional circumstances. This minimum ensures the IVA is viable for creditors and covers administration costs. Your actual IVA payment depends on your disposable income after essential expenses. If you cannot afford £100/month, alternative debt solutions like a DRO or debt management plan may be more suitable.

Your IVA payment is calculated by subtracting all essential living expenses from your total monthly income. The remainder is your disposable income, which becomes your IVA payment. Essential expenses include rent/mortgage, council tax, utilities, food, transport, insurance, childcare, and household costs. IVA practitioners use standard spending guidelines to ensure fair, realistic expense allowances. The calculation is reviewed annually and adjusted if your circumstances change.

You can afford an IVA if you have at least £100 per month disposable income after covering all essential living expenses. An IVA should never leave you struggling to pay bills or buy food. Free debt advisors conduct a detailed income and expenditure assessment to calculate an affordable payment that allows you to live comfortably while repaying debt. If an IVA is not affordable, they will recommend alternative solutions.

You are eligible for an IVA if you have at least £6,000 in unsecured debts, can afford at least £100 per month in payments, live in England, Wales or Northern Ireland, and have at least two creditors. You must also have a regular income (employed or self-employed). Use our IVA calculator to work out your monthly payment and check if an IVA is the right solution for your situation.

The main IVA criteria are: minimum £6,000 unsecured debt, at least £100 monthly disposable income, regular income from employment or self-employment, minimum 2 creditors, and residency in England, Wales or Northern Ireland. You must be able to demonstrate you cannot repay your debts in full within a reasonable time. Your IVA must be approved by 75% of your creditors by value.

Yes, an IVA can be refused if you do not meet the eligibility criteria, cannot afford the minimum £100 monthly payment, have insufficient debt (under £6,000), or if your creditors vote against it. An IVA needs 75% creditor approval by value. If refused, alternative debt solutions like a Debt Management Plan or Debt Relief Order may be more suitable.

Getting an IVA is a good idea if you have unmanageable debt over £6,000, can afford regular monthly payments, want to avoid bankruptcy, and need legal protection from creditors. An IVA typically writes off 60-75% of debt and freezes all interest. However, it will affect your credit score for 6 years and may impact mortgage applications. Speak to a free debt advisor to see if an IVA is right for your situation.