No. Not everyone gets accepted for an IVA, and that is a good thing. An IVA is formal insolvency, so unsuitable cases should be filtered out before a proposal reaches creditors.
Why an IVA may not be suitable#
An IVA may not be suitable if:
- Your debts are too low for a protocol IVA
- You qualify for a Debt Relief Order
- Your income is too unstable
- Your monthly surplus is too low
- A Debt Management Plan would repay the debt in a similar time
- Your assets or home equity make another route more appropriate
- Your job or professional rules make insolvency too risky
The 2025 IVA Protocol says protocol IVAs are usually for consumers with debts of around £7,000 or more, regular sustainable income and no realistic way to repay everything during the proposed term.
Creditor approval#
Even if an Insolvency Practitioner believes an IVA is suitable, creditors still vote. GOV.UK explains that the IVA starts if creditors holding 75% of your debts agree to it. If creditors reject the proposal, the IVA does not begin.
What happens if you are not accepted#
Rejection should lead to a comparison of alternatives, not pressure to force an IVA through. The next route may be:
- Debt Management Plan
- Debt Relief Order
- Bankruptcy
- Full and final settlement
- Direct repayment plan
- Breathing Space while advice is arranged
If a firm says everyone is accepted or that approval is guaranteed, treat that as a warning sign.
Related questions#
- Do IVAs get rejected?
- How do I apply for an IVA?
- What can I do instead of an IVA?
- Can you be scammed with an IVA?
Sources