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i England, Wales, and Northern Ireland

Managing an IVA

Can I pay my IVA off early?

You can pay off an individual voluntary arrangement (IVA) early if you receive a lump sum.

This could be from:

  • An inheritance
  • An insurance payout
  • A redundancy package
  • A gift from friends or family
  • Another type of windfall

But there are some things to consider.

Any windfalls or inheritance are considered an asset.

  • A windfall is any unexpected income
  • Tell your IVA Supervisor about it as soon as possible

The people you owe may prefer a gift because:

  • It is not considered an asset
  • You could settle your IVA early

A friend or family member paying off your IVA would need to:

  • Provide ID
  • Provide personal information
  • Confirm they understand how the funds are being used

Regulations require us to confirm the source of any funds.

This is to make sure that:

  • The money is not being laundered
  • The money is not from illegal activity

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How do I pay my IVA off early?

Your Insolvency Practitioner (IP) can talk you through paying off your IVA early.

They arrange a variation meeting with your creditors if:

  • They think your offer is reasonable
  • They think it is likely to be accepted
  • They will explain your other options if they do not think the offer will be accepted

When you make an offer you ask your creditors to agree that:

  • No more payments are needed after the lump sum is paid
  • The IVA is closed down once payment is made

Your IP can explain this more.

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.

What happens after I pay off my IVA?

You can start rebuilding your credit rating when you pay off your IVA early.

The IVA stays on your credit report for six years from the date that it is approved. That means:

  • It may affect if you can get credit
  • You may not qualify for a mortgage
  • You may not qualify for other large-scale credit products

Can you help me pay off my IVA?

You must let your IP know if:

  • Your monthly income increases
  • You receive a windfall
  • You get an inheritance

They will then:

  • Review your budget
  • Confirm what you need to pay into your IVA

You may be able to pay off your IVA early if you can now:

  • Pay off the outstanding debts in full and
  • Pay the costs of the IVA

Read more guides to managing your IVA.

Considering an IVA? Get free debt advice.

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Things to know:

  • You need an Insolvency Practitioner (IP) to set up an IVA
  • There are fees once your IVA starts
  • Fees are detailed in your IVA proposal, which an IP will assist in drafting
  • Any fees have to be approved by creditors
  • Your IP will explain what fees you need to pay for your IVA
  • IVAs are not available in Scotland

IVAs are arranged by StepChange Voluntary Arrangements, part of StepChange Debt Charity. In Scotland, a protected trust deed is a similar solution. This has different benefits, risks and fees.

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