Every year, your insolvency practitioner reviews your IVA to check whether your payments should change based on income and expense updates. This guide explains what to expect and how to prepare.
Check EligibilityReviews happen every year on your IVA anniversary date, ensuring payments remain affordable and fair.
Provide payslips, bank statements, and updated expense information to prove current financial circumstances.
Payments increase if income rose or decrease if circumstances worsened, maintaining fair contribution levels.
Annual reviews are scheduled assessments of your financial situation, ensuring your IVA payments remain appropriate for your current circumstances. They happen every year on or near your IVA anniversary date.
Reviews serve several important purposes:
Typical Review Schedule:
Your IP needs current financial evidence:
For Employed Individuals:
For Self-Employed:
For Benefit Claimants:
All Applicants Need:
Your IP compares current finances to your previous review:
Calculation Example:
Previous Year (Review 1):
Current Year (Review 2):
Payment increased by £75 due to £100 income increase and £100 expense increase, resulting in £100 net disposable income increase.
Your payments may increase if:
However, you don't pay 100% of income increases to your IVA. Most IVA agreements allow you to keep 50% of increases as incentive to improve your situation.
Payments may reduce if:
Provide clear evidence of reductions. Your IP won't simply accept your word—bank statements and official documents prove changes.
If your income and expenses are similar to last year, payments usually stay the same. However, you still must complete the review and provide documents. Your IP needs proof that circumstances are stable.
Small changes (£20-30 per month) typically don't trigger payment adjustments. IPs use reasonable thresholds to avoid constant small changes.
Failing to respond to review requests is serious:
If you're struggling to gather documents, contact your IP immediately. They'd rather help you complete the review late than fail your IVA.
Before the Review:
During the Review:
After the Review:
Understanding the difference:
If circumstances change dramatically mid-year (job loss, serious illness), don't wait for the annual review—request a variation immediately.
Self-employed reviews are more complex due to fluctuating income:
Maintain accurate accounts and be prepared to explain income variations.
Your final review (year 4 or 5) focuses on equity release requirements and IVA completion preparation:
After completing your review:
Your IP reviews your current income and expenditure compared to last year. You provide updated payslips, bank statements, and expense details. If your circumstances changed significantly, payments adjust up or down accordingly.
IVA reviews happen annually, around the anniversary of your IVA start date. Most IVAs run 5-6 years, meaning you'll have 4-5 annual reviews. Your IP sends review paperwork 2-3 weeks before the review date.
Employed: 3 months payslips and bank statements. Self-employed: Latest accounts, tax returns, 6 months bank statements. Benefits: Award letters, bank statements. All: Updated expense breakdown, evidence of any changed circumstances.
Payments increase only if your disposable income rose significantly. Income increases, reduced expenses, or household changes may trigger higher payments. However, you keep a portion of increases as incentive to improve your situation.
Yes, if your income decreased, expenses increased, or circumstances worsened (job loss, illness, new baby), your IP reduces payments to affordable levels. Provide evidence supporting the change for payment reductions.
Failing to respond to review requests can cause IVA failure. Your IP needs updates to comply with the agreement and report to creditors. If you miss the deadline, contact your IP immediately to explain and provide information.
From receiving paperwork to payment adjustment: 2-4 weeks. You have 7-14 days to submit documents. Your IP reviews (3-5 days), calculates new payments (1-2 days), and implements changes from the next payment.
Your IP reports review outcomes to creditors, showing income/expense changes and payment adjustments. This maintains transparency and ensures creditors know you're paying what you can afford based on current circumstances.
Annual reviews are scheduled yearly checks. Variations are unscheduled changes when circumstances change significantly between reviews. Both can adjust payments, but variations handle emergencies while reviews are routine.
Reviews happen on schedule and shouldn't be delayed without good reason. If you're temporarily unable to provide documents (hospitalization, bereavement), contact your IP to explain. They may grant short extensions but reviews must happen.
Get expert guidance on preparing for your IVA annual review and understanding how payment adjustments work.
Get PreparedManaging finances and daily life during your IVA arrangement.
Changing your IVA terms when income or expenses change significantly.
What happens if you receive unexpected money during the IVA term.
What happens when your IVA ends and getting your completion certificate.
Options for settling your IVA early with a lump sum payment.
What to do if you can no longer afford your IVA payments.