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i England, Wales, and Northern Ireland only

Managing an IVA

Managing an individual voluntary arrangement (IVA)

It is important to make your agreed IVA payments. Talk to your IVA supervisor if you are struggling.

An IVA is a form of insolvency.


  • It is legally-binding
  • It lets you pay off part of your debt within a fixed amount of time
  • The rest of your debt is written off at the end

You must stick to the terms of your IVA. Otherwise it could fail.

In Scotland you may be able to apply for a protected trust deed is a similar solution. This has different benefits, risks and fees.

Managing your IVA

What happens if my circumstances change during an IVA?

Let your IVA supervisor know if your circumstances change during your IVA.

They can help you work out what to do.

What happens if I miss an IVA payment?

Missing an IVA payment could break the terms of your agreement.

Tell your IVA supervisor if you cannot make a payment to your IVA.

Can my IVA fail?

Find out how your IVA can fail and the steps to prevent it happening.

What happens when my IVA ends?

Find out what to expect once you make your final IVA payment.

 

Clare Lindley and James O'Carroll of StepChange Voluntary Arrangements are licensed to act as insolvency practitioners in the UK by the Insolvency Practitioners Association.

 

Budgeting on an IVA

You must live to your budget for your IVA to be successful.

Budgeting helps you cover all your essential costs without overspending.

This means your IVA is more likely to succeed.

Keep an eye on your finances

Your budget should cover monthly household costs but also one-off annual costs, like:


  • Road tax and
  • Insurance

Your budget allows you to put money away for these costs each month.

Try sorting your spending into three simple categories:


  • Regular payments
  • Mortgage/rent
  • Council tax
  • Gas
  • Electric
  • Your IVA payment
  • Everyday expenses
  • Food
  • Toiletries
  • Petrol
  • Expected one off costs/emergencies
  • Repairs
  • Clothes
  • MOT
  • Birthdays

Keep track of one-off annual expense savings by:


  • Opening a separate basic bank account to transfer the money to
  • Putting the money in a jar

Keep on top of regular payments

Manage your regular payments by setting up a direct debit for your important bills.

Schedule these to come out the same day you get paid.

Use a comparison site to see if you can save by switching energy suppliers.

You can also review your:


  • TV
  • Internet
  • Phone packages
  • Subscriptions

Cancel or switch anything you do not use.

Remember that your every day expenses can vary a lot. Things like:


  • Food
  • Shopping
  • Sports
  • Hobbies
  • Petrol

Try to stick to what is in your budget.

 

StepChange Voluntary Arrangements is a registered trading name of Consumer Credit Counselling Service Voluntary Arrangements Limited, a wholly owned subsidiary of StepChange Debt Charity.

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