What happens if my IVA fails?

Your IVA will only normally fail if you don’t keep to the terms detailed in your proposal. The most common reason for the failure of an IVA is several missed monthly payments. In the first instance, we would talk to you about the reasons for the arrears, we may be able to ask for your payments to be lowered temporarily.

If you have been unable to get the arrangement back on track, a notice of breach will be issued by the Insolvency Practitioner. Unless the breach is rectified within the specified time, your IVA will officially be failed.

The Insolvency Practitioner will need to inform all your creditors that the IVA has failed. Once the creditors become aware the IVA has failed they are free to pursue you for the outstanding debts. The Insolvency Service will also be informed and the IVA will be removed from the register within 3-months.