Will my IVA be affected if I change my job?
No, your IVA will not be automatically affected if you change your job.
Your IVA does not require you to keep the same job for the duration. However, your IVA is dependant on you keeping up with your IVA contributions.
So, changing jobs isn't the issue but, rather, it's the effect that the change has on your ability to maintain your IVA contributions that matters.
Changes in Income and Expenditure
When your IVA began, your IVA provider assessed your monthly finances and established how much you could afford to pay into your IVA.
Any change in job will mean that your IVA provider will likely need to take a look at your income and expenditure again, to see if your affordability has changed.
Increase in Income
If your new job comes with an increase in pay, there’s a good chance that the amount you pay into your IVA will need to increase.
The more of your original debt you can afford to repay during the IVA, the less your creditors will have to write-off at the end - which is the basis of the agreement you have.
Basically, as your affordability rises, so will your payments into the IVA.
However, the budget review will not just focus on your increased income. It will also take note of any increases to your expenditure that you've incurred, too. Any increase in commute costs, or other work related expenses will be taken into account.
Any expenditure increases will be offset against your new income.
Creditors will then expect your IVA contributions to increase by 50% of the net increase to your affordability.
For example, if your IVA payments were previously £200pm and your income and expenditure review shows your new affordability is £300pm, then your IVA payment would rise to £250 pm.
Decrease in income
If your new income is lower, your income and expenditure review will determine whether you can afford to maintain your IVA contributions at the same level.
If your affordability has reduced this may not be possible, however, help may be at hand.
Since the introduction of the 2025 IVA Protocol, your Insolvency Practitioner has discretion to provide upto a 20% reduction to your IVA payments without the need to seek creditor approval.
Unfortunately, IVAs that began before 01st July 2025 are subject to an older IVA protocol and only provide IP discretion of upto a 15% reduction.
If this level of reduction is insufficient and a larger reduction is needed, your Insolvency Practitioner may call a Variation Meeting to seek creditors' approval to reduce payments further.
Although the outcome to a Variation Meeting is never guaranteed, in the main, creditors tend to be receptive.
But be aware that creditors might insist on an extension to your IVA's repayment term if their expected returns fall too low.
If a new payment agreement can't be reached and your IVA payments are no longer affordable, then your IVA may face failure.
In such circumstances, it’s best to speak with your IVA provider to see what help they can provide.
Keeping your IVA payment schedule
Under the terms of your IVA, your IVA provider will expect you to maintain your payment schedule without any interruptions.
However, your IVA provider has, at their discretion, the ability to provide payment breaks when there's good reason. - A change to your payday or the frequency at which you get paid would justify asking for help.
So, if either of these changes happen to you, it’s advisable to open a conversation with your IVA provider and see if they can help make the transition easier.
Communication is key
It's worth noting that whenever you have a serious change to your personal circumstances, such as a change in jobs, it's best to notify your IVA provider, so they can support you as and when you need it.
Experience tells us that the most important thing you can do is maintain good communications with your Insolvency Practitioner and their supervisory team.
Keeping your IVA Supervisor updated of any changes in circumstances will give your IVA the best chance of reaching a successful outcome.
