It all depends on how much you owe, how much how much you can afford to offer to your creditors over the life of the IVA (which is calculated by adding total monthly payments to any equity you are able to release) and how much your Insolvency Practitioner's (IP) fees are.

For example, let's say you owed £30,000 and your IP calculated you could afford to offer your creditors £200 per month. This means that you would pay £12,000 in total into your IVA (IVAs generally last for 60 months). Out of this £12,000, your IP's fee might be £4,000, which means that your creditors will receive £8,000. This technically means you've only paid back 26% of your total debts. Including fees, you have made payments in to the IVA to the value of 40% of the original debt.

This question was answered by Debt Advice Foundation, an independent UK debt advice charity. If you're considering entering into an IVA or need further help with your IVA, Debt Advice Foundation provides a free, confidential helpline and can advise you and on whether you qualify. Click here to find out more.