IVAs · 4 min read
Missed IVA payments: payment breaks, variations and what happens if an IVA fails
Struggling to keep up IVA payments? How payment breaks and variations work, when an IVA fails, what happens to your debts and fees, and the options if your circumstances have changed.
- Fact-checked
- Against official sources
- Last updated
- Next review due
- April 2027
- Applies to
- England and Wales
- Sources
- 3 listed on this page
Independent guidance, not a government service. This page is general information about the law in England and Wales, not financial or legal advice. Debt solutions have fees, risks and consequences. For free, impartial advice, contact MoneyHelper or a debt charity.
The short answer
If you’re struggling with IVA payments, contact your supervisor straight away. Many IVAs allow a payment break or a variation to reduce payments if your circumstances change. If you keep missing payments and nothing is agreed, the IVA can fail: your creditors can chase the remaining debts again (with interest), fees already paid usually aren’t refunded, and you could face bankruptcy. Acting early gives you the most options.
Step 1: tell your supervisor before you miss a payment
Your IVA supervisor is the licensed insolvency practitioner running your IVA. Tell them as soon as your circumstances change – for example:
- job loss, reduced hours or a pay cut
- illness or disability
- relationship breakdown or bereavement
- a new baby or caring responsibilities
- a big rise in essential costs
Provide an updated income and expenditure statement and evidence.
Step 2: ask about a payment break or variation
| Option | What it is |
|---|---|
| Payment break | A short pause in payments if your problem is temporary. Many IVAs allow this within limits set out in the terms. |
| Reduced payments | If your income has fallen, the supervisor may agree lower payments, sometimes with creditors’ approval. |
| Variation | A formal change to the IVA terms, voted on by creditors, for bigger or longer-term changes. |
| Extension | Missed payments may be added to the end of the IVA. |
When an IVA fails
If you miss several payments, don’t respond to your supervisor, or break other terms (such as not disclosing a windfall), the supervisor can issue a certificate of termination. When an IVA fails:
- creditors can chase the remaining debts again, including interest and charges
- bailiff and court action can restart for debts that were included
- fees already paid are usually not refunded
- the supervisor or a creditor may petition for your bankruptcy
- the failed IVA stays on your credit file for six years from when it started
Options if your IVA has failed or is about to fail
- A Debt Relief Order may be possible if your income has fallen and you now meet the limits (debts of £50,000 or less, £75 a month or less spare). See how to apply for a DRO.
- Bankruptcy may be the best route for some people. See how to go bankrupt and IVA vs bankruptcy.
- Breathing Space can give 60 days’ protection while you get advice, once the IVA has ended. See the Breathing Space guide.
- A new arrangement with creditors, such as a debt management plan.
Free advice is available from MoneyHelper and debt charities.
Frequently asked questions
How many IVA payments can I miss?
It depends on your IVA terms. Many allow a limited number of missed payments or a payment break, but you should always speak to your supervisor before missing one.
Can I end my IVA early?
You can sometimes complete it early by paying a lump sum, or it can end if your circumstances change and creditors agree. Ask your supervisor.
Will bailiffs come back if my IVA fails?
Creditors can restart enforcement for debts that were in the IVA, including bailiffs for debts such as council tax arrears.
Sources
How we wrote this article
- Research: written from primary sources such as legislation.gov.uk, GOV.UK and the Insolvency Service, then fact-checked by a second member of our team. The sources are listed above.
- Checked: last checked on . Next review due April 2027, or sooner if the rules change.
- Scope: applies to England and Wales. If you live in Scotland or Northern Ireland, read our Scotland and Northern Ireland guide. It is general information, not personal advice.
- Independence: we are not a government website or service, and we are not connected to any council, court or enforcement company.
- Money: we may receive a fee if we introduce you to a debt advice firm. This doesn't change what we write. How we're paid.
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