Typically, a debtor must have a minimum of £10,000 of debt with at least two creditors in order to be considered a suitable fit for an IVA. An Insolvency Practitioner will then attempt to come to an agreement with those creditors to accept regular repayments totalling a reduced amount of the debt. Certain criteria must be met for the IVA to be considered legal and effective; not all of your credits need to agree to the IVA schedule for it to go ahead, however.
Creditors that are owed 75% or more of your debt must agree to the proposal. If you owe 5 creditors £3,000 each then if four of the five creditors agree, your IVA will be accepted and you will enter into agreement to pay the agreed amount.
If you only have two creditors for roughly the same amounts of money then your Insolvency Practitioner will have to ensure that both of them agree to the repayments. Your Practitioner will work with you to determine who and how much money you owe and they will attempt to draw up a repayment agreement with each to ensure the greatest chance of approval. If a proposal is rejected then your Insolvency Practitioner will usually work with creditors individually to ensure that an agreement is reached eventually.