How much will my IVA monthly repayment be?

Each IVA payment is unique, simply because each IVA is tailored to the personal circumstances of the applicant.

However, there is a method used to ensure that every IVA has the same basic principle.


Each IVA payment is based on affordability to the applicant.

To ensure this is calculated correctly, each IVA applicant should apply a series of calculations to their financial position, in order to establish the right balance.

Personal Circumstances

Some applicants will be homeowners with equity in their home, yet others will be living as tenants. Some will have large family commitments, yet others will live alone.

Equally, the size of debt in each IVA will vary too and here at My IVA Adviser we see the full range of unsecured debt levels and have represented clients with debts ranging from £10,000 to above £1,000,000.

It is because of these variable circumstances that each IVA needs to be assessed individually, to ensure the IVA repayment is set to the correct affordable level.

However, even though the IVA monthly repayment is calculated in the same way each time, the actual amount to be repaid into the IVA can vary substantially as a result of the differing personal circumstances of each case.

It's crucial, therefore, that when calculating the IVA repayments, the main emphasis is on affordability. After all, there is little point in arranging to make repayments into an IVA if those repayments are set too high.

Minimum Payment Ratio

To complicate matters further there is also a minimum repayment ratio below which the creditors will not accept an IVA. Currently this ratio is set at 25% of the original debt plus Insolvency Practitioner costs, although this ratio can often change when dealing with larger debt levels.

In exceptional circumstances this repayment ratio can be reduced to as low as 10%. So, if you feel this lower ratio may be relevant to your personal circumstances we advise you to call our helpline on 0800 088 7503 and seek further clarification.

The IVA repayment should be higher than this pre-set minimum for the IVA to be a viable option.

Disposable Income

The monthly repayment has to be seen to be a fair, affordable and sustainable amount and has to be equal to the applicant's disposable income. The disposable income is calculated by deducting the applicant's reasonable monthly living costs from their monthly income.

The figure that remains is the disposable income. If this amount is higher than the minimum monthly acceptable level and can be proved to be fair ( i.e. no over inflated expenses), then that would reflect the expected monthly payment into the IVA.

Experience Counts

Whilst each of the above elements dictates the method of how your IVA payment is calculated, one further aspect that shouldn't be overlooked is the importance of the adviser's experience.

It is only by applying the skills of an experienced adviser that you can be sure the IVA payment will be truly affordable.

An inexperienced adviser can cause severe payment problems for the applicant if they fail to interpret the information correctly.

Need Some Help?

If you would like My IVA Adviser to calculate your IVA payment, or would like a second opinion on an IVA payment you've been told you must pay, call 0800 088 7503 now and one of our specialist IVA advisers will ensure you've been advised correctly.

Or, if you prefer, simply complete this form and someone will contact you at your preferred time.

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