What to expect at your IVA annual review

Your IVA provider carries out an annual review to see if there have been any changes to your income or spending.

If there have been changes, the review allows your provider to see whether your monthly payments need adjusting so they’re still fair to you and your creditors.

Your yearly review will usually take place around the anniversary of the start of your IVA.  

Your IVA provider will ask if the amount of money you have coming in has gone up or down over the course of the last year.

They’ll also check whether there have been any changes to expenses including rent/mortgage, household bills and groceries. 

If your income has gone up or your expenses have gone down, you might be asked to pay more.

And if your income has gone down or your expenses have gone up, your provider might look at reducing your payments. 

If there have been no changes, your payments will stay the same.

Before your review, it’s a good idea to collect the past year’s payslips, bank statements (two or three months’ worth will be fine) and your most recent P60. You’ll be asked to send these to your IVA provider.

It might also be helpful to ask for a copy of your last income and expenditure report so you can compare it against a recent bank statement and note any income or costs that have changed.

Once your annual review is complete, your IVA provider will send a copy to you and your creditors. 

If your provider is looking to reduce your payments by more than 15%, they’ll usually have to ask the creditors to vote on the proposed change. For smaller reductions, this isn’t necessary.

If you can afford to increase your payments, this won’t reduce the length of your IVA. It just means you’ll pay off more of your debt.

Any changes to your payment amount will usually take effect from the month following your review.

If you experience any significant changes in circumstances, such as losing your job or moving home, let your IVA provider know as soon as possible. Don’t wait for your annual review. 

It’s important to speak to your provider if you’re struggling to afford your current payments.

There may be things they can do to help, such as:

• reducing your monthly payments
• temporarily pausing payments 
• checking whether another debt solution is more suitable

You should also let your IVA provider know if you’ve unexpectedly come into some money. They’ll explain the rules on windfalls and IVAs.