Once a year, every IVA goes through an annual review. It's a routine check-in where your insolvency practitioner (IP) looks again at your income and outgoings to make sure your monthly payment still fairly reflects what you can afford. There's nothing to fear here — it's a normal, expected part of how an IVA works, and it exists to keep the arrangement fair to both you and your creditors.
In plain terms: if your circumstances have improved, your payment might rise a little; if things have got tighter, it might come down. The review simply keeps everything in step with your real life.
The short answer
- The annual review happens once a year for the life of your IVA.
- Your IP reassesses your income and essential spending.
- Payments can go up, down or stay the same, depending on your circumstances.
- You'll usually be asked for recent payslips, bank statements or proof of income.
- It's also when pay rises, and sometimes windfalls, are taken into account.
What the review is for
An IVA is built around one idea: that you pay what you can genuinely afford towards your debts over five or six years. But incomes and outgoings change — wages rise, children grow up, energy bills move. The annual review keeps your monthly payment matched to your current situation, so you're never paying more than is fair, or less than you can reasonably manage.
What information you'll need to provide
Your IP will ask you to share up-to-date evidence of your finances. Getting this ready in good time keeps the review quick and painless.
Typical documents
- Recent payslips, or accounts if you're self-employed.
- Bank statements covering the last few months.
- Details of any change to your rent, mortgage or key bills.
- Information about any benefits you receive.
If you run your own business, your income can vary from month to month, so it helps to keep clear records throughout the year.
How your payment might change
If you're earning more
Many IVAs include a rule about pay rises — commonly, you keep a portion of any increase and pay a share of the rest into the arrangement. This is worked out during the review. It's meant to be fair: you still feel the benefit of a rise, while creditors receive a reasonable contribution.
If money is tighter
If your income has dropped or your essential costs have climbed, the review is a natural moment to lower your payment. And if you're struggling before the review comes around, you don't have to wait — read what to do when you can't afford your IVA payments, as reduced payments and payment breaks can be arranged at any time.
Windfalls, bonuses and lump sums
The review is also when your IP checks whether you've received any money that should be paid into the IVA. Bonuses, overtime, inheritance, a compensation payout or similar can count as a windfall, and you're expected to declare these. Being upfront matters — declaring them at the right time keeps your arrangement in good standing.
What if my circumstances have changed a lot?
Sometimes a review reveals a big shift — a new job, a house move, a change in your family. If the change is significant, your IP may propose a variation, putting revised terms to your creditors for approval. This is a routine mechanism for keeping an IVA workable. If you own your home, the review process also feeds into the later stages of your arrangement, including the equity release step in year five, so it's worth understanding how those pieces connect.
What happens if you miss the review or don't respond?
The annual review isn't optional, and it's in your interest to take part. If you don't reply to your IP's requests for information, they can't properly assess your payment, and repeatedly ignoring the review could ultimately put your arrangement at risk. The far easier path is to respond promptly with the documents asked for. If you're finding it hard to gather everything, or you're worried about what the review might show, say so — your IP would much rather hear from you than chase you.
Staying on track through the year
- Keep payslips and statements filed so they're easy to hand over.
- Tell your IP about major changes when they happen, not just at review time.
- Set aside a little time before the review to update your budget honestly.
- Remember your IVA still affects your credit rating throughout — the review doesn't change that, but completing your IVA is a step towards recovery.
How IVA Advice Online can help
If you're not yet in an IVA and want to understand what the yearly reviews would involve, or you're weighing up whether an IVA is the right path, we're here to help. Contact IVA Advice Online for free, confidential advice tailored to your circumstances. Our advice is always free, and we'll only ever flag a fee if a solution you choose carries one. You can also find free, impartial guidance at MoneyHelper.