What Happens to an IVA if You Die?

The IVA usually ends. Remaining debts are dealt with from the person’s estate. Family don’t inherit the debt unless they were jointly liable.

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.

It’s a difficult subject, but many people in an IVA want to know their family won’t be left with their debts. Here’s what normally happens.

The short answer

When someone in an IVA dies, the IVA usually comes to an end.
Creditors can claim against the person’s estate (what they leave behind).
Relatives don’t inherit debts, unless they were joint borrowers or guarantors.
If the estate isn’t enough to pay everyone, the unpaid debt is usually written off.
The executor should tell the insolvency practitioner as soon as possible.

What happens to the IVA?

An IVA depends on the person making regular payments, so it can’t continue after their death. The supervisor will normally bring the IVA to an end and report to creditors. Money already paid in will be distributed to creditors under the IVA terms.

Who pays the remaining debt?

The person’s estate (their money, property and possessions) is used to pay debts before anything is passed on under a will. If there isn’t enough, the estate is insolvent and creditors share what’s available. Debts that can’t be paid are usually written off. See what happens to debt when you die.

When could family members be affected?

Joint debts: a joint borrower remains liable for the whole balance.
Guarantees: anyone who guaranteed the debt can be asked to pay.
Shared property: a jointly owned home may be affected by secured debts like a mortgage.

What should the executor do?

Tell the insolvency practitioner, provide a copy of the death certificate, and don’t pay any of the person’s debts from your own money. The Bereavement Support or Tell Us Once services on GOV.UK can help notify other organisations.

Common questions

Do I have to pay my parent's IVA debts?

No, not from your own money, unless you were a joint borrower or guarantor. Debts are paid from the estate if there’s enough.

Is life insurance used to pay IVA debts after death?

It depends on how the policy was set up. A policy written in trust usually pays the beneficiaries directly and doesn’t form part of the estate. Check with a solicitor or the insurer.

Does the IVA debt get written off when someone dies?

Any debt that the estate can’t pay is usually written off, because there’s nobody else legally responsible for it.

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.