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Missed a payment - individual voluntary arrangements

This advice applies to England

This page tells you what to do if you have an Individual Voluntary Arrangement (IVA) and you have missed one of your payments.

Late payments

If you've missed one or more of your IVA payments, you should contact your insolvency practitioner (IP) straight away. Tell your IP why you missed a payment and ask if you can make the payment late.

Your IP may accept a late payment if you have a good reason for the delay. For example, if there was a problem with your bank or you were paid late.

Notice of breach

If you miss a payment your IP will probably send you a notice of breach. This will ask you to explain what went wrong and to put it right. Putting right a late payment would mean paying it as soon as possible. Most arrangements will give you up to three months to respond to the notice. If you do this, the IP will not take any more action against you.

If you don't pay

If you don’t put things right, the IP will either:

  • change the terms in the IVA. For example, lowering the payments if your financial circumstances have got worse and aren’t going to get better soon
  • end your IVA and give you a certificate of termination
  • apply to the court to make you bankrupt.

If your financial circumstances have got worse and won’t get better soon, you should tell your insolvency practitioner straight away.

Other useful information

There is a voluntary code of practice, called the IVA Protocol, which all insolvency practitioners and most creditors have signed up to. The protocol makes sure the processes involved in setting up and managing an IVA are clear and fair. It also sets out the terms and conditions all parties must follow.

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