Pay Rise, Bonus or Overtime During an IVA

What Happens to My IVA if I Get a Pay Rise?

Your income is checked at each annual review. If it has gone up, your IVA payment may increase, though you’ll usually keep some of the rise.

Last updated: November 2026

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Things to know about IVAs

An IVA is a formal insolvency procedure. It must be approved by your creditors, stays on your credit file for six years, fees are taken from your payments, and debts are only written off if you complete it. It isn’t right for everyone.

Read the key risks

Creditors must approve it. An IVA only goes ahead if creditors holding at least 75% of the debt that is voted agree. Your proposal can be rejected.
Credit file and public register. An IVA stays on your credit file for six years from the start date and is listed on the public Individual Insolvency Register while it runs. Getting credit will be harder.
Spending restrictions and annual reviews. You live on an agreed budget for the length of the IVA (usually 5–6 years). Your income and spending are reviewed each year, and your payment can go up.
Fees. Fees are taken from your monthly payments, so less of what you pay reaches your creditors. How IVA fees work.
Your home. Under the current IVA Protocol, your home isn’t included in the IVA and you won’t be asked to remortgage. If your share of the equity is £10,000 or more, the IVA usually lasts six years instead of five.
If it fails. If you can’t keep up payments the IVA may fail, you would owe the remaining debt again, and the supervisor may petition for your bankruptcy.
Write-off only on completion. Remaining qualifying unsecured debts are only written off if the IVA is completed successfully. Secured debts, court fines, child maintenance, student loans and some other debts can’t be included.
Other options may suit you better. A debt management plan, DRO or bankruptcy may be more suitable. IVAs are available in England, Wales and Northern Ireland only; different solutions apply in Scotland.

Getting a pay rise or a new job during an IVA is good news. It does mean your IVA payment may change, so it’s worth knowing what to expect.

The short answer

You must tell your insolvency practitioner about significant changes in income.
Your payment is reviewed at your annual review.
Your IVA terms set what share of an increase goes to creditors.
Large or one-off bonuses may be treated as windfalls.
Regular overtime counts as income.

Do I have to report a pay rise?

Yes. Your IVA terms require you to report changes in your circumstances, and income is checked at each annual review using payslips and bank statements.

How much of my pay rise goes to the IVA?

It depends on your IVA terms and whether your costs have gone up too. Often, a share of the increase in spare income goes to creditors, and you keep the rest. Your insolvency practitioner will explain how your terms work.

What about bonuses?

Regular, contractual bonuses are usually treated as income. Large one-off bonuses may be treated as a windfall and paid into the IVA, at least in part.

What if my costs have gone up too?

Include any increases in rent, energy or childcare when your income is reviewed. Your payment is based on what you can afford, not just your income.

Common questions

Should I turn down a promotion because of my IVA?

No. You’ll usually keep part of any increase, and higher income can help you complete the IVA and rebuild afterwards.

Does a new job affect my IVA?

Tell your insolvency practitioner. Your payment may change depending on your new income and costs.

Will overtime increase my IVA payment?

Regular overtime counts as income. One-off overtime may be treated differently under your terms.

How IVA Advice Online can help

Every situation is different, and an IVA isn’t right for everyone. We can look at your income, spending and debts with you and set out the debt solutions you could qualify for, including options other than an IVA. To talk it through, get in touch.