An IVA is normally only suitable for people with a predictable, fixed income. In order to get an IVA, you must usually have at least £70 left in disposable income after you have met your essential living costs each month. Your creditors may still agree if you don’t have enough disposable income as long as you have assets that you can sell to raise money towards paying your debts. We would be able to offer you more specific advice once we know your specific circumstances.
To work out if you have enough disposable income, you’ll need to make a budget. Add up any income from benefits, maintenance payments, and employment, any lump sums of cash (for example an inheritance or competition win), and any defined contribution pensions, and then subtract your everyday outgoings (like rent or mortgage payments, utility bills, food bills, and childcare costs). If you decide to go ahead with an IVA, your insolvency practitioner will need to see your budget.