Preparing for an IVA Annual Review

Every year, as part of your Individual Voluntary Arrangement (IVA), you’ll take part in an annual review. This is designed to ensure your IVA remains fair, affordable and sustainable.

While some people feel anxious about this step, it’s a simply a chance to check in, adjust if needed and make sure your plan still fits your current financial circumstances.

What is an IVA Annual Review?

An annual review is a formal check to:

• Reassess your income and living costs
• Confirm your monthly payment is still affordable
• Identify any changes in your financial situation
• Keep your creditors updated on your progress

You’ll receive a written summary of the review once it’s complete. This outlines any changes to your IVA and your creditors will be informed too.

What you’ll need to provide

To complete your review, your Insolvency Practitioner (IP) will ask you for:

• Bank statements and payslips covering the last three months
• Your latest P60 statement
• Updated household bills or expense evidence (if anything has changed)

It helps to check your current budget, which we’ll send to you about a month before your review. Compare it to your real costs and let us know if anything has changed (e.g. new rent, childcare or utility bills).

What happens during the review

Income check

We’ll look at your wages and/or other income to see if anything has changed.

Spending check

We’ll review essential expenses like rent/mortgage, food, travel and childcare.

Budget review

If you’re paying too much or too little, we’ll adjust your plan to keep it sustainable.

Support check-in

If you’re struggling, this is a good time to raise concerns – we’ll explore options with you.

What if my income has changed?

If your income has increased

You may be asked to contribute more – usually 50% of any increase in surplus income – in line with IVA rules. This helps repay your debts faster, but your IP will ensure the new payment remains affordable.

For example, if your original IVA payment was £100, and your surplus income increases by £100, you would now have £200 left after expenses. You would pay 50% of the £100 increase (£50) towards your IVA, making your new payment £150, while keeping the remaining £50 for yourself. If your income has decreased

There are two routes you can take:

• Small reduction (up to 20% under the 2025 IVA Protocol[1]) – Your IP can approve this without creditor consent.
• Larger or longer-term reduction – Your IP will propose a formal variation to your creditors. They may agree to lower payments, however may require you to extend your IVA to compensate for reducing your payments.

What if nothing has changed?

If your income and expenses are stable and you’re managing well, you can continue your IVA with no changes. We’ll simply update your creditors and confirm your progress.

Remember we’re here to help

Your annual review isn’t a test or a judgement – just an opportunity to make sure your plan still works for you.

If you’re worried about an upcoming review or unsure what to send, speak to your IVA Case Officer. You can also contact us free on 0800 316 1833.

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