IVAs and moving abroad

If you have an Individual Voluntary Arrangement (IVA) and you’re thinking about relocating overseas, it’s important to understand how this move could affect your arrangement – and your financial future.

Whether you’re moving for work, family or a fresh start, this guide will help you make an informed decision.

Can I keep my IVA if I move abroad?

Yes, you can continue with your IVA while living abroad – as long as you can keep up with your monthly repayments. However, be mindful that:

• Living costs abroad can sometimes be higher than expected.
• Exchange rates and overseas bank fees may affect your finances.
• If you fall behind on payments, your IVA could fail and creditors may pursue you again for the full debts.

If your circumstances change, don’t ignore the problem – help is available.

What should I do if I can’t afford my IVA payments abroad?

The most important step is to contact your Insolvency Practitioner (IP) as soon as possible. They may be able to help by:

• Adjusting your payments to reflect your new cost of living (with creditor approval).
• Discussing a temporary payment break.
• Considering a full and final settlement if you have access to a lump sum.

Should I sell my home before moving abroad?

This is up to you. If you do, under the latest IVA Protocol[1] introduced in July 2025, you’re allowed to keep the proceeds and retain 100% of the equity from the sale.

This means:

• Generally you’re not required to pay the money into your IVA, to check how your property is treated go through your IVA proposal for details.
• You can use the proceeds to relocate, rent or support yourself abroad.
• You may still need to demonstrate that your IVA repayments remain affordable once you’ve moved.

If you plan to sell your home and move abroad, it’s important to speak with your IP first. They can guide you through the process and ensure everything stays compliant with the terms of your IVA.

Alternatively, if you choose to rent out your property while abroad, this is usually allowed – as long as it doesn’t interfere with your ability to make your IVA payments.

What happens if I let my IVA fail after moving abroad?

Letting your IVA fail is not recommended, even if you’re planning to stay overseas long-term.

• If your IVA fails, your debts become payable in full again.
• Interest and charges may be added.
• Your creditors can still pursue you, including legal action or CCJs.

It’s always better to seek help and try to adapt your IVA, rather than abandon it.

Can I go bankrupt while living abroad?

Yes – if your IVA is no longer manageable, and no other options are suitable, you may be able to apply for bankruptcy from overseas.

However, this is a major financial decision, and we strongly recommend speaking to us – and your IP – first.

What should I do before moving abroad with an IVA?

Before relocating, make sure you:

1. Tell your IP about your move and share your new contact details
2. Review your new living costs – and check whether your IVA payments remain affordable
3. Plan ahead for mortgage or rent payments, currency transfers and financial management abroad
4. Be open to reviewing your IVA budget – your IP may request an income and expenditure update to propose changes to your creditors

Need support?

At PayPlan, we’ve helped thousands of people manage their IVAs during life changes, including moving abroad. We’re here to offer confidential, supportive debt advice – without pressure or judgment.

Call us on 0800 316 1833 (Mon-Fri), chat online at www.payplan.com or speak to us via WhatsApp.

[1] The 2025 protocol only applies for IVAs approved after July 2025. Previous IVA protocols apply for IVAs approved before then.