Problems With an IVA: What Can You Do?

If you are having problems with your IVA, don't simply stop making payments. Contact your Insolvency Practitioner (IP) as soon as possible and explain what has changed.

Depending on your circumstances and the terms of your IVA, there may be several options available.

The first thing to do is contact your Insolvency Practitioner.

Explain why you are struggling and provide any information they need to assess your circumstances. Your IP can review your income and expenditure and consider whether your IVA can be adjusted or whether another solution is more appropriate.

The current 2025 IVA Protocol allows several options where circumstances change, including payment holidays, reductions in regular contributions and formal variations.

Don't ignore letters or calls from your IP. Failing to engage with the annual review or failing to comply with the terms of your IVA can potentially lead to the arrangement being terminated.

What if I can no longer afford my IVA payments?

If your income has fallen or your essential expenses have increased, tell your IP immediately.

Under the 2025 Protocol, the Supervisor can agree a payment holiday in certain circumstances. Across the IVA, payment holidays can total up to the equivalent of nine months' payments, and the arrangement can normally be extended by up to 12 months to recover the missed contributions

Your IP can also consider reducing your regular payment. Under the current Protocol, the Supervisor has discretion to reduce regular contributions by up to 20% without referring the change back to creditors. A larger reduction normally requires a formal variation and creditor approval.

Don't stop your payments without speaking to your IP

Simply cancelling your payment or refusing to cooperate can put you in breach of your IVA.

If you are struggling, contact your IP before the problem becomes more serious.

Can my IVA payment be reduced?

Potentially, yes.

Your IVA payment should reflect what you can reasonably afford after your essential household expenditure has been taken into account.

If your circumstances have changed, your IP can review your income and expenditure

Under the 2025 Protocol, a Supervisor can reduce the regular contribution by up to 20% without obtaining a further creditor vote. If a larger reduction is needed, a formal variation may be required.

A reduction isn't automatic, however. Your IP will need evidence of the change in your circumstances and will assess whether the proposed payment remains appropriate.

What if my income has increased?

An IVA is not simply a fixed monthly payment that can never change.

You are normally required to tell your IP about relevant changes in your circumstances, including increases in income and certain additional payments or windfalls.

The 2025 Protocol requires an annual review of your income and expenditure. Where disposable income has increased, the Protocol provides for 50% of the increase in disposable income to be added to the regular contribution following the review.

This does not necessarily mean that every pay rise will result in your IVA payment increasing. Your household income and expenditure need to be considered together.

For example, a salary increase may be partly or completely offset by increases in mortgage, rent, energy, food, childcare or other essential costs.

What happens if I miss IVA payments?

Missing payments doesn't necessarily mean your IVA will immediately fail.

The important thing is to tell your IP why you've missed them.

Under the 2025 Protocol, you can be in breach where you are in arrears equivalent to three or more months of payments, unless an agreed payment holiday or reduction applies

If your IP believes you are in breach, you should receive a Notice of Breach explaining the problem and giving you an opportunity to remedy it or propose a reasonable way of doing so.

Can missed IVA payments be added to the end?

Potentially.

Where payment holidays have been agreed, the arrangement can normally be extended by up to 12 months to recover the missed contributions, unless you make good the shortfall in another way.

The exact position depends on the reason for the missed payments and the terms of your particular IVA.

What happens if I receive a bonus or windfall during my IVA?

You should tell your IP.

Depending on the terms of your IVA, certain additional income, windfalls, inheritances, compensation payments or other sums may need to be paid into the arrangement.

The 2025 Protocol specifically requires relevant information about assets, debts and income to be disclosed, and failure to provide accurate information can have serious consequences.

Don't assume that you can keep a large payment simply because it was unexpected.

Ask your IP how the payment should be treated before spending it.

Can I settle my IVA early?

Yes, potentially.

There are different ways an IVA can come to an earlier conclusion, depending on your circumstances.

For example, you may be able to propose a full and final settlement to your creditors.

A full and final settlement involves proposing a lump sum or other agreed payment in place of continuing with the original IVA terms. If creditors accept the variation and the agreed payments and other obligations are completed, the IVA can be completed.

We've got a separate guide explaining this in more detail:

Full and Final IVA Settlement

What if I think my IVA was unsuitable?

If you believe you were given poor or unsuitable advice before entering your IVA, you can raise a complaint with your Insolvency Practitioner.

Explain clearly:

• What you were told before entering the IVA
• Why you believe the advice was unsuitable
• What information you provided at the time
• What you believe should have happened instead
• How the advice has affected you

Remember that entering an IVA involves signing formal documents, so any complaint should be supported by clear evidence where possible.

Can I complain about my Insolvency Practitioner?

Yes.

You should normally complain to your IP or their firm first and give them the opportunity to investigate your complaint.

If the complaint cannot be resolved, you may be able to escalate it through the appropriate regulatory or complaints process.

The Insolvency Service also provides information about complaints involving Insolvency Practitioners.

It is important to distinguish between being unhappy with an IVA and having evidence that your IP has acted improperly. A complaint should set out the specific issue and the evidence supporting it.

What happens if my IVA fails?

This is one of the most important things to understand before deciding to stop paying.

If an IVA is terminated, the protection provided by the arrangement comes to an end. Creditors may then be able to pursue outstanding debts directly, and interest and charges that would otherwise have been dealt with under the IVA can become relevant again.

The amount you have already paid into an IVA does not necessarily mean that your debts have been paid off.

Before allowing an IVA to fail, you should obtain advice about what happens next and whether another debt solution may be more appropriate.

Can I cancel my IVA?

You can ask your Supervisor to terminate the IVA, but you should understand the consequences before doing so.

Once an IVA is terminated, creditors are no longer prevented by the arrangement from pursuing the outstanding balances directly.

Depending on your circumstances, alternatives could include:

• A different form of debt management
• A Debt Relief Order, if eligible
• Bankruptcy
• A new IVA or variation, where appropriate
• Another debt solution

There isn't a single solution that is right for everyone.

Having problems with your IVA? Our guides explain what happens if your circumstances change, including: IVA & Your Home, Full and Final IVA Settlement and IVA Pros & Cons.