IVA Variation: Changing Your IVA Payments

What Is an IVA Variation?

A variation is a formal change to your IVA, such as lower payments or a different length. Your creditors vote on it.

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.

Your IVA is based on your circumstances when it starts. If they change for the long term, the IVA may need to change too. That’s done through a variation.

The short answer

A variation changes the terms of an existing IVA.
It’s used when your circumstances change for the long term, such as a permanent drop in income.
Your insolvency practitioner prepares the proposal and creditors vote on it.
It needs approval from creditors holding at least 75% of the debt that is voted.
If it’s rejected, the original IVA terms still apply.

When is a variation needed?

Your income has fallen permanently, for example after ill health or a lower-paid job.
Your essential costs have risen, such as after a separation or a new child.
You want to offer a lump sum to settle the IVA early (a full and final settlement).
Something in the original terms no longer works, such as how equity in your home is dealt with.

How does the creditor vote work?

Your insolvency practitioner sends creditors a proposal setting out what has changed and what’s being proposed. Creditors vote, and the variation is approved if creditors holding at least 75% of the debt that is voted agree. Creditors can also suggest changes, known as modifications.

Is a variation the same as a payment break?

No. A payment break is a short pause for a temporary problem, and is often allowed under your existing terms. A variation is a lasting change to the IVA itself.

Are there fees for a variation?

Some IVAs allow the supervisor to charge for the work involved in a variation, taken from the money paid in. Check your IVA terms or ask your insolvency practitioner.

Common questions

What happens if creditors reject my IVA variation?

The original terms continue. If you genuinely can’t keep to them, your insolvency practitioner will discuss other options, which may include ending the IVA.

How long does an IVA variation take?

Usually a few weeks, to allow time for the proposal to go to creditors and for them to vote.

Can a variation reduce my IVA payments?

Yes. Reducing payments after a long-term drop in income is one of the most common reasons for a variation.

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.