What happens if I can't keep up with my IVA payments?

If your financial circumstances change during your IVA, it's crucial that you contact your Insolvency Practitioner as soon as possible. Common reasons include job loss, reduced income, illness, or unexpected essential expenses.

Your IP has several options available to help: a payment break (temporarily pausing payments for a short period), a variation to reduce your monthly payments, or extending the IVA term to compensate for reduced payments.

A variation to your IVA requires creditor approval, but most creditors are willing to agree to reasonable changes because the alternative - the IVA failing - usually results in them receiving less money.

If your IVA does fail (is terminated), the consequences can be serious. You would once again owe the full amount of the original debts (minus any payments already made). Your creditors could resume collection activity, and in some cases, you could be made bankrupt.

However, IVA failure is relatively uncommon when people communicate early. The most important thing is not to simply stop paying - always speak to your IP first.