Payment Problems During My IVA
If you believe that you are about to default on your IVA payment you should speak to your IP as soon as possible.
Since the introduction of the IVA protocol in February 2008, protocol compliant IVAs have given the IVA Supervisor discretion to help customers struggling to maintaining their IVA payments.
They can provide a payment reduction, or a payment break.
Reduced Payments
Protocol compliant IVAs starting after 01st July 2025 allow the supervisor discretion to reduce IVA contributions by upto 20% of the agreed payment without having to seek creditors' approval.
Unfortunately, protocol compliant IVAs started before this date only provide the supervisor discretion to reduce contributions by upto 15% of their normal level.
If this reduction doesn't provide sufficient relief, or if you are in a non-protocol compliant IVA, then your supervisor can seek a variation to the original terms of your IVA.
Seeking a larger reduction will require a Variation Meeting to be called, which gives creditors a vote as to whether they are willing to agree to the reduction.
Creditors are generally receptive to larger reductions when needed, but will often request an extension to the IVA term in exchange.
Payment Breaks
Protocol compliant IVAs provide the supervisor with discretion to implement payment breaks of upto 9 months.
When a payment break is agreed, the original term of the IVA is extended by an equal amount of months to any breaks taken. This ensure your creditors are not disadvantaged as a result of the break taking place.
Voluntary Payment Defaults
If you simple want to bring your IVA to an end as quickly as possible, then defaulting on your payments will achieve this.
However, simply failing to maintain your IVA payments without prior discussion with your IVA supervisor may lead to unforeseen consequences, such as you being made bankrupt.
So, if you are looking to terminate your IVA, it is advisable to talk to your IVA supervisor at the earliest opportunity.
They are in the best position to offer you constructive and practical advice on how to terminate your IVA in a controlled manner.
Please note: If you are in an IVA, you are vulnerable to being contacted by people looking to take advantage of your financial difficulties.
They do this by searching through the IVA register and contacting people in IVAs with false claims of mis-selling.
They often recommend IVA payments be stopped immediately, without consultation with your IVA supervisor and, instead, suggest that paid be made to them.
This is a scam, usually perpetrated by unregulated individuals or companies, looking to earn a quick buck.
Our advice to anyone contacted in such a manner is to speak to your IVA supervisor straightaway.
If you have concerns about the viability of your IVA then discuss your concerns with your supervisor first. Then, if after consultation, you decide to terminate your IVA, your supervisor will advise you on the correct termination process.
