IVA Annual Reviews: What Happens Each Year

What Is an IVA Annual Review?

An annual review is a formal check of your financial circumstances, carried out by your Insolvency Practitioner once every 12 months throughout your IVA. It is a standard, mandatory requirement - not a sign anything has gone wrong.

Most reviews result in no change to your monthly payment. If your finances have improved, payments may increase slightly. If things have got harder, your Supervisor can use the review to propose a reduction or payment break.

What Does the Review Cover?

• Income: Current take-home pay, overtime, bonuses, and any secondary income sources
• Expenditure: All essential monthly outgoings - rent, utilities, food, transport, childcare
• Household changes: New dependants, changes to a partner's income, changes in relationship status
• Windfalls: Any lump sums received since the last review
• Asset changes: Any significant changes to your assets
• Compliance: Confirmation that you have kept up payments and met your IVA obligations

Documents You Will Need

• Recent payslips - typically the last 3 months
• Bank statements - typically the last 3 months
• Latest P60 or self-assessment tax return (if self-employed)
• Evidence of any benefit payments received
• Evidence of significant expenditure changes (e.g. a rent increase letter from your landlord)

What Can Change After a Review?

1. No Change - Most Common Outcome

Income and expenditure are broadly unchanged. Monthly payment continues as is.

2. Payment Increase

If your income has risen, the 50% rule applies. Half of any net income increase above a threshold (typically 10% of your current payment) goes to the IVA.

3. Payment Reduction or Variation

If you have experienced a significant income drop - redundancy, illness, reduced hours - your Supervisor can propose a variation: reduced payments, a payment break of 3-6 months, or an extended IVA term. This requires creditor approval but is almost always agreed where genuine hardship is demonstrated.

What If You Do Not Respond?

Tips to Stay on Top of Annual Reviews

• Keep payslips and bank statements organised throughout the year - you will need them each review
• Tell your IP proactively if your income changes mid-year rather than waiting for the annual review
• Be accurate and honest - underreporting income has serious legal and financial consequences
• If it has been a difficult year, the review is your formal opportunity to request a variation
• Ask your IP to explain clearly how any payment change has been calculated

This information is for general guidance only and does not constitute financial or legal advice. An IVA is a formal insolvency solution - fees apply and your credit rating will be affected. Seek independent professional advice before making any decisions.