We aim to make our website as accessible as possible. However if you use a screen reader and require debt advice you may find it easier to phone us instead. Our phone number is 0 8 0 0 1 3 8 1 1 1 1. Freephone (including all mobiles).
StepChange Debt Charity logo
i This solution is only available in England, Wales and Northern Ireland.

Getting an IVA

Can I get credit or loans on an IVA?

While you have an IVA (individual voluntary arrangement), there are rules over not taking out further credit, such as loans and credit cards.

You’ll need written permission from the insolvency practitioner (IP) supervising the arrangement before you can borrow any further money.

Considering an IVA?

Try Debt Remedy

Free online debt advice in 20 mins

Get debt help

What credit aren’t you allowed to take out on an IVA?

During an IVA you can’t borrow more than £500 from any lender without asking your IP for their permission first. This includes:

  • credit cards
  • overdrafts
  • personal loans
  • payday loans (and other products from commercial lenders)
  • borrowing money from family or friends.

Even if you get permission from your IP, you may find it difficult to borrow from many lenders because your credit file will show the IVA and defaults on your existing debts.

You need to think carefully about an IVA because it can affect different areas of your life, including your job, home and your ability to get credit in the future.

If you take out further credit of more than £500 without permission, you’ll be breaching the terms of your IVA.

Can I borrow money from family and friends during my IVA?

It’s against the terms of your IVA to obtain additional credit above £500 without prior consent from your IVA supervisor. This includes borrowing money from family or friends.

By repaying your family and friends first, you’re showing them preferential treatment over and above the creditors in your IVA.

If you’re struggling with your monthly budget or your IVA payments, or you have an emergency cost to meet, it’s important you contact your IVA provider to discuss your options.

Could I enter into a salary reduction scheme during my IVA?

Like borrowing money from your family or friends, most salary deduction schemes are treated as a form of additional credit, as you’re effectively borrowing money from your employer. These include cycle to work schemes and season ticket loans.

Depending on the type of salary deduction, your IVA provider may be able to agree to this, but it’ll depend on the amount of the deduction, the reason for it and the impact on your IVA.

For example, a season ticket loan may actually result in you having more money available each month as it’s cheaper than paying for regular tickets, so your IVA provider may be able to agree to it. However, in every case, your provider would need to see full details of the scheme before making any decision about whether they agree to you entering into it.

If you're in doubt, talk to your IVA provider. They'll be happy to clarify anything you're unsure about and tell you exactly where you stand.

IVA help. Get free debt advice.

For free, confidential help with individual voluntary arrangements you can speak to one of our expert debt advisors on our freephone debt helpline. If you already have an IVA, you should always discuss your situation with your IP first.

To find out if an IVA is the best debt solution for your situation, complete our online debt help tool, Debt Remedy.

Helping you become debt free...

“I wish to thank your staff for all the great help they gave me when I was in so much debt.
They were a pillar of support to me.” (Leslie, Essex)

Foundation for Credit Counselling Wade House, Merrion Centre, Leeds, LS2 8NG trading as StepChange Debt Charity and StepChange Debt Charity Scotland. A registered charity no.1016630 and SC046263. It is a limited company registered in England and Wales (company no:2757055). Authorised and regulated by the Financial Conduct Authority.

We link to external websites where they contain relevant information for our visitors. We're not responsible for the content of these websites, or any infringement on your data rights under data protection regulations by any external website provider.

*This is the average rating of our service based on the StepChange reviews on Feefo by DMP and DRO clients three months into their solution.

© StepChange Debt Charity 2018