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The updated Individual Voluntary Arrangement (IVA) Protocol 2025 is now in effect – bringing in meaningful updates to improve outcomes and protect individuals entering into IVAs.

These Protocol changes strengthen and support the approach we already take at PayPlan, always making sure we only recommend IVAs when they’re a suitable fit.

What is an IVA?

An IVA is a legally binding agreement that helps you repay your unsecured debts through affordable monthly payments over an agreed period – usually five or six years. Once your IVA ends, any remaining unsecured debt included is written off.

As with all IVAs, there are fees involved, but these are included in your monthly payments and are clearly explained before you decide to go ahead.

Click here to find out more about  IVAs and whether they could be right for you.

What is the IVA Protocol?

The IVA Protocol is a set of agreed industry standards that ensure IVAs are handled fairly, transparently and consistently – with your best interests at heart.

It’s an agreement between IVA providers (such as our sister companies PayPlan Partnership Limited and PayPlan Bespoke Solutions Limited) and creditors. At PayPlan,  our IVAs follow the protocol guidance, giving you confidence that your case will be handled with care and clarity from the start.

What’s new in the 2025 IVA Protocol?

The updated IVA Protocol introduces several key improvements – many of which reflect the high standards we already follow:

  • Signposting to better-suited solutions – If your debt level is low, the Protocol now reinforces something we’ve always done – which is making sure you’re pointed to more suitable options. We never recommend an IVA to anyone unless it’s the right fit.
  • Greater protection for homeowners – Under the new rules, in a protocol IVA your home is no longer considered an asset to be used toward repaying debts. Instead, the amount of equity in your home will guide how long your IVA lasts – offering more security and predictability.
  • More flexibility when life changes – If your circumstances change during your IVA, your Supervisor could approve payment holidays or reductions without needing to go back to your creditors, and they still can. Fortunately, now the payments can be reduced up to 20% instead of 15% without needing a meeting, helping your plan adapt to real life more easily.
  • Improved guidance if your IVA ends early – If your IVA needs to close sooner than planned, the new rules ensure you get your completion or termination certificate more quickly, alongside clear guidance and access to free, regulated debt advice.

New rules around home equity

If you’re a homeowner, here’s how the new equity rules work:

  • If your share of equity is under £10,000 (based on 85% of your property’s value), your IVA will last five years – with no need to release equity and no extension.
  • If your share of equity is £10,000 or more, your IVA will usually last six years, which replaces the need to remortgage or release funds from your home.

What is equity?

Equity is the current market value of your home minus any outstanding mortgage and any other secured loans. If the property is jointly owned, your share is calculated proportionally.

Our commitment to you

We’re proud to lead with integrity and care. We:

  • Only recommend IVAs when they’re genuinely the right option
  • Support vulnerable clients with tailored guidance and extra care
  • Clearly explain fees – which are included in your monthly payment and never hidden
  • Make sure you understand the full picture – including the impact on your credit file and all your available options

We also provide a full breakdown of the pros, cons and alternatives before you make any decision.

What if an IVA isn’t right for me?

If you’re unsure about an IVA or want to explore all your options, we can talk you through:

Our goal is to help you make the most informed and confident decision for your situation.

Speak to us – no pressure, just support

Whether you’re exploring an IVA or looking for a better-suited route forward, we’re here to listen and help.

Call us free on 0800 813 1833, use Live Chat on payplan.com or fill out our form to connect with us on WhatsApp.

Looking for budgeting support in the meantime? Visit BudgetSmart which is full of tips and tools to help you stay in control every day.