What happens to my IVA if I lose my job?

Last Modified 16th of February 2021

Getting let go from a job can happen to anyone at any time – but what happens to your IVA if you find yourself unemployed? Here’s what happens and how you can do your best to remedy the situation.

Let your practitioner know immediately

The best thing to do first is to let your Insolvency Practitioner (IP) know about any change in your circumstances. Your IP can give you a payment break for up to 3 months without asking your creditors. This will allow you to find a new job and get your finances back in order before you continue making repayments on your IPA.

When did you start your IVA?

You may be protected under the new IVA protocol if your IVA started after 1st July 2012. This means you’ll be covered for emergencies such as an unexpected expense, losing your job or not being able to work because of illness / injury. All you need to do is provide evidence of your situation and your IP may agree to a payment break. You can pay your missed repayments later on when you have your finances together.

What if my financial situation is unlikely to improve?

If you think your finances won’t improve in the long run then you might be able to decrease your monthly repayments. Your creditors must agree to the new repayments and your IP might charge you a fee for changing the amount.

What if my IVA fails?

Sometimes creditors won’t agree to the change and you won’t be able to make your repayments. If this is the case then you may have to file for bankruptcy or ask friends and family to help you out. However, to reject the proposed repayment change, creditors must provide a valid reason. If you do have to file for bankruptcy, think of it as a clean slate and an opportunity to start afresh.