Debt solutions
Updated 14 March 2025
What happens if I receive an inheritance during my IVA?
Find you what you should do if you receive an inheritance during your individual voluntary arrangement (IVA) and whether all of it will need to be paid into your IVA or whether you’ll be allowed to keep some.
What do I need to do if I receive an inheritance?
If you inherit a property or sum of money while in an IVA, you must tell your insolvency practitioner immediately as it is considered an asset.
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How much of my inheritance goes to my IVA?
If your inheritance is over £500, you may need to pay all of it into your IVA.
If you have enough, you’ll need to pay the amount you owe your creditors in full, as well as any IVA fees. If there is money left over once you’ve paid this, you'll be able to keep it.
If your inheritance isn’t enough to pay the full amount you owe, you may still be able to able to make a full and final settlement.
What if the inheritance is small?
If you inherit even a penny under £500, you’ll be able to keep it but you should still discuss this with your IP|.
Are there exceptions?
Life isn’t always black and white, and neither are IVAs.
There may be circumstances where you can keep some of your inheritance if paying all of it into your IVA would be detrimental to you. For example, if you need to pay for emergency repairs in your home.
The key is to communicate openly with your insolvency practitioner. They will guide you on what is reasonable and what isn’t.
Written by: Michelle Kight
Financial content writer
Michelle is a qualified journalist who spent over seven years writing for her local online newspaper. Having grown up in some of the North West’s most deprived areas, she has a first-hand and empathetic understanding of what it means to face serious money worries. With a strong interest in mental health issues, she is a keen advocate of boosting the accessibility of financial wellness services.
Financial Promotions Manager
Last updated: 14 March 2025
Written by: Michelle Kight
Financial content writer
Last updated: 14 March 2025