The IVA Protocol Explained (2025 Update)

The IVA Protocol Explained

The IVA Protocol is the standard set of terms used for most consumer IVAs. A new version has applied to protocol IVAs since 1 July 2025.

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.

Most consumer IVAs in England and Wales follow a standard set of terms called the IVA Protocol. It’s agreed between the insolvency profession, creditors and the government’s Insolvency Service, so that similar cases are treated in a similar way.

The short answer

The Protocol sets standard terms for straightforward consumer IVAs.
A new version applies to protocol IVAs from 1 July 2025.
Under it, your home isn’t included and you won’t be asked to remortgage.
Homeowners with £10,000 or more equity usually have a six-year IVA instead of five.
Not every IVA is a protocol IVA. Some use bespoke terms.

Why does the Protocol exist?

Before the Protocol, each IVA could have very different terms. Standardising them makes proposals quicker to assess and gives people in IVAs more consistency. It covers areas such as how payments are reviewed, how windfalls are treated and what happens if payments are missed.

What changed in 2025?

The biggest change was for homeowners. Previously, many were asked to remortgage towards the end of their IVA to release equity, or to pay for an extra year if they couldn’t. Under the 2025 version, your equity is assessed at the start and simply sets the length of the IVA: usually five years if your share is under £10,000, or six years if it’s £10,000 or more. See IVAs for homeowners.

The official summary is in GOV.UK’s IVA Protocol key facts.

Does the Protocol apply to my existing IVA?

IVAs set up before 1 July 2025 normally keep the terms they were agreed on, which may include a year-5 equity release clause. Check your own proposal or ask your insolvency practitioner.

Common questions

Is every IVA a protocol IVA?

No. The Protocol is designed for straightforward consumer cases. More complex cases, such as some self-employed people or those with significant assets, may use different terms.

Do I have to remortgage in an IVA under the 2025 Protocol?

No. Under the 2025 Protocol you won’t be asked to remortgage. Your equity decides whether the IVA lasts five or six years.

Where can I read the IVA Protocol?

The Insolvency Service publishes the Protocol and a key facts summary on GOV.UK.

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.