Life does not stop because you are on an IVA. Find out how to plan, budget for, and enjoy holidays during your arrangement, with practical tips and guidance on what your insolvency practitioner needs to know.
One of the most common worries people have about starting an IVA is whether they will have to give up everything they enjoy. The truth is, living with an IVA means budgeting carefully, but it does not mean putting your life on hold for five years. Holidays are a perfect example.
An Individual Voluntary Arrangement is designed to help you repay what you can realistically afford while still covering your essential living costs and reasonable extras. Your insolvency practitioner understands that everyone needs time to relax and recharge, and a well-planned holiday is a perfectly normal part of life, even during an IVA.
This guide covers everything you need to know about IVA and holidays, including what you can spend money on, how to budget for a break, what to tell your IP, and practical tips for making the most of your time away without putting your arrangement at risk.
Yes, you can go on holiday while on an IVA. There is no legal restriction on travel during an IVA, unlike bankruptcy. As long as you budget from your allowances and keep up your payments, a holiday is perfectly fine.
Understanding the rules around IVA and travel helps you plan with confidence
Staycations and UK breaks are absolutely fine during an IVA. Save from your monthly allowances and enjoy a caravan park, holiday cottage, or city break without any concerns.
You can travel abroad during an IVA. There are no passport restrictions or travel bans. Affordable package holidays to Europe or beyond are perfectly acceptable if funded from your budget.
The only requirement is that you fund holidays from your agreed allowances and never use credit. Your IVA payments must continue on time, and spending should be reasonable for your circumstances.
There is no fixed rule about how much you can spend on a holiday during your IVA. However, your insolvency practitioner will expect your spending to be proportionate to your income and IVA payments. A week in a self-catering apartment in Spain funded through months of careful saving is perfectly reasonable. A luxury all-inclusive resort costing thousands might raise questions about whether your IVA contributions should be higher.
As a general guide, most IPs consider holidays costing up to £500 per person (saved from allowances over several months) to be perfectly acceptable. The key is transparency and common sense.
Your insolvency practitioner is there to help you, not to stop you from living your life. Keeping them informed about holiday plans is a positive step that helps keep your IVA running smoothly.
Remember, your insolvency practitioner wants your IVA to succeed. They understand that holidays are important for wellbeing and will be supportive as long as your payments stay on track. Being honest builds trust and makes the whole process easier.
With a little planning, you can save enough for a well-deserved break without affecting your IVA
Putting aside £30 to £50 a month from your clothing or entertainment allowances adds up to £360 to £600 over a year. That is enough for a week away in the UK or a budget break in Europe. Open a separate savings pot so the money is ring-fenced.
Travelling outside school holidays and peak season can save you 30 to 50 percent on accommodation and flights. September, October, and early May offer good weather in many European destinations at a fraction of the summer price.
Self-catering accommodation gives you control over food costs. Holiday parks, Airbnb rentals, and camping are all affordable options. Cooking some meals yourself while eating out occasionally keeps costs manageable and enjoyable.
Sign up for deal alerts from holiday comparison sites. Last-minute package deals, cashback offers, and loyalty points can all help stretch your holiday budget further. Just make sure you pay with your debit card, never credit.
£40/month
Saved from clothing and entertainment allowances
£480/year
Total saved over 12 months of careful budgeting
7 nights
Enough for a week in the UK or a budget European break
Unlike bankruptcy, an IVA does not restrict your travel. Bankrupt individuals may need to surrender their passport and seek permission to travel abroad. With an IVA, your passport stays with you and you are free to travel wherever you like. This is one of the benefits of choosing an IVA over other insolvency options.
Common questions about going on holiday during an IVA
Our friendly advisors can help you understand what you can and cannot spend money on during your IVA. Whether you are considering starting an IVA or already have one in place, we are here to help with free, confidential advice.
Free advice. No pressure. Confidential service.
Day-to-day life during your IVA, including budgets, allowances, and lifestyle tips.
What happens at your yearly IVA review and how income changes are assessed.
What happens if you receive unexpected money, gifts, or inheritance during your IVA.
A complete guide to Individual Voluntary Arrangements and how they work.
How to change your IVA terms if your circumstances change during the arrangement.
Our comprehensive guide to IVAs, covering eligibility, costs, and the full process.