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Cancelling your individual voluntary arrangement

This advice applies to Wales

If you've got an IVA and you're finding it difficult to keep up your payments, or you think it's not working for you, you may consider cancelling it.

This page tells you whether you can cancel and what the consequences might be.

Struggling to pay

If you’re struggling to make payments your insolvency practitioner maybe able to help you work out a solution.

More about what to do if you're struggling to pay

Can you cancel the IVA before it finishes?

You can cancel your IVA at any time before it finishes but think carefully about what will happen as a result. Discuss your options with your IP before you make a decision or get independent advice.

If you’re struggling to make your payments, speak to your insolvency practitioner. They may be able to help work out a solution. You won’t necessarily have to cancel the IVA.

What happens when the IVA is cancelled?

If you do decide to cancel, contact your insolvency practitioner (IP) in writing. Your IP will fail the IVA and send you a notice of termination. You will still have to:

  • make arrangements with your creditors to sort out your left over debts
  • pay your IP fees.

If you don't act quickly to sort out your remaining debts, you may be made bankrupt by the IP or your creditors.

Next steps

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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