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FAQs

Self-employed IVA

Our FAQs answer the most common questions about how a Self-employed IVA works, so you can decide with confidence whether this solution is right for you.

How long does a Self-Employed IVA last?
Self-Employed IVAs usually last for five years, but can extend to six years if you own a home with equity above the threshold or if reduced payments are necessary due to changes in your business.
Will I lose my home or car?

Unlike bankruptcy, you won’t be forced to sell your without your agreement.

Under the 2025 IVA Protocol[1], you’ll not lose your home as a result of the IVA, if you have a level of equity of £10,000 or more you’ll need to make an additional 12 payments into your IVA, extending it to six years. Learn more about the equity clause.

You may be asked to sell a high-value car, but you can keep a vehicle essential for work or daily life, typically under £8,000 in value.

Can I keep trading while in a Self-Employed IVA?
Yes. One of the main benefits is that you keep full control of your business and can continue trading while repaying your debts affordably.
What’s the difference between a Self-Employed IVA and a regular IVA?
  • A Self-Employed IVA can adjust monthly payments to match your business cashflow, especially if your income changes seasonally.
  • You can prioritise payments to certain creditors (like key suppliers) to keep your business running, which isn’t usually possible in a standard IVA.
  • You’ll create a 12-month business budget to show creditors your arrangement’s sustainable – this isn’t required for a regular IVA.
  • You’re more likely to be allowed further credit over £500 in a Self-Employed IVA if it’s essential for your business, provided you can afford it.
What debts can I include in a Self-Employed IVA?

Most unsecured debts can be included, such as:

  • Bank overdrafts, loans and credit cards
  • Store cards and catalogue debts
  • Council tax arrears
  • Payday loans
  • County Court Judgments (CCJs)
  • Utility bill arrears, including gas, electricity and/or water
  • Loans from family or friends
  • HMRC debts (including benefit overpayments)

Debts usually not included are:

Do I qualify for a Self-Employed IVA?

If you’re self-employed, live in England, Wales or Northern Ireland, and can afford to make a monthly payment to your debts, you may be eligible for a Self-Employed IVA. If you live in Scotland, you might qualify for a Trust Deed, which is a similar solution –  check the differences here.

What is a Self-Employed IVA?
A Self-Employed IVA is a formal debt solution designed to help you repay your unsecured debts over an agreed period while allowing you to keep running your business.