Change IVA Company

Change IVA Company

Once your IVA has started you cannot change the company managing it. If you no longer want to work with them you may have to consider cancelling the agreement.

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Can you change your IVA company?

After you start an IVA it is not possible to change the company managing it. This is because the Insolvency Practitioner (IP) working for them who is in charge of the Arrangement is legally appointed by your creditors.

After the appointment is made you cannot apply to change your IP. You have to stay with them for the duration of the agreement.

For this reason it is very important to speak to 2-3 companies before choosing the one you decide to work with. You can then pick the organisation you feel most comfortable with.

You cannot change your IVA company to a different one once your Arrangement has started.

How to Complain about your IVA Company if you are not Happy

If you are unhappy with your IVA company you should try and resolve the problem with them first. Start by writting a formal letter of complaint to your Insolvency Practitioner. Outline your issues and what you feel needs to be done to put them right.

After this if you are still unhappy you can escalate your complaint to the Insolvency Service. This Government department is ultimately responsible for overseeing the activities of Insolvency Practitioners.

Having gone through the complaints process if you still feel unhappy you only have two options. Either you must accept you will not be able to change the situation and see the Arrangement through. Or you can cancel your IVA and try something different.

If you are unhappy with your IVA company you may be able to resolve the issue by escalating to the Insolvency Practitioner responsible for your case.

Can you Cancel your IVA and start a new Arrangement?

You can cancel your IVA at any time after it starts. You do this by stopping the monthly payments and informing the company that you want them to fail the Arrangement.

Once it has failed you need to remember you will probably still owe most if not all of the debt you started with. You will be left by your old company to make your own decision about what to do next.

Depending on your circumstances one of the options available is to start a new IVA. You can do this with a different company who you feel will be better able to understand your situation. Remember you will have to start your payments again from the beginning.

If HMRC is one of your creditors take advice before cancelling your IVA. In certain circumstances they could make you bankrupt if the original agreement fails.

Could you Stop your IVA and use a different Debt Solution?

After you cancel your IVA you do not have to start another one. You are free to use a different solution to manage your remaining debts if you wish.

One option available to you is to pay your creditors yourself. There is nothing to stop you agreeing monthly payment amounts directly with them based on what you can afford.

Alternatively you may decide that you would be better off going bankrupt. This could be a very good solution for you if you are renting your home and have little or no disposable income to make ongoing payments towards your debts.

If you decide to cancel your IVA you do not have to start another one. You can use a different solution to manage your debt if you wish.

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8 thoughts on “Change IVA Company

    Samantha says:

    I entered into an IVA IN 2016, my debt was £27000. I have paid in 23,500 to date but they keep adding fees on they now want another £16000. How is this correct? Can I change to another company?

      Hi Samantha

      One of the things you have to remember about an IVA is that if your income improves or you get a windfall during the Arrangement the amount you pay into it will increase.

      One of the standard terms of an IVA is that if you find yourself in a position where you can pay more you are ultimately responsible for paying 100% of the debt you originally owed plus all the IVA Company fees plus interest on your original debt of 8% pa from the start date of the IVA.

      This means that if your income goes up enough or the windfall you receive is large enough it is possible to pay more into the Arrangement than the amount you originally owed. It sounds as though this is what has happened in your case.

      If you have been told you will have to pay an additional £16k this means that you will ultimately pay the original debt of £27000 + £12500 in fees and interest. If the arrangement lasts for 3 years I can see interest of £6500 being added. However this would mean the fees charged would be £5500 which seems excessive so I would question your IVA company about this.

    Matt says:

    I have an iva set up with creditfix, for which they haven’t taken a payment yet, it is due to go to them on 21/4/19.
    I have spoken to another company that have told me they can offer me a better payment option without such a great step up after my car finance is paid off in 2 years, so I would like to take my business with them. Can I do this?

      Hi Matt

      In theory the answer is yes. You can stop an IVA at any time and then start a new one up with another provider. Generally speaking by doing this you would lose any payments you had already made. However given you have made no payments it will not be a problem. Credit Fix cannot charge you anything so you will not be out of pocket.

      The one issue I can see is the fact that your circumstances have not materially changed (ie your income is still the same). As such there is a risk your creditors will not accept a new IVA with lower monthly payments after they have already just accepted one at a higher amount. Normally there has to be a good reason for them to do this. For example if your income or living expenses had materially changed. Where this has not happened I would be concerned that your creditors might not be happy and reject your second proposal.

      Before making your final decision I suggest you put this to the new IVA company you are speaking to and see what they say. If they are confident they can get a second IVA accepted then you need to decide whether to take their word for it. However it is important to understand the risk.

    Keira says:


    I am in an IVA. When I started I explained that I always got paid between two dates. And was told this would be ok and wouldn’t cause an issue. I am now being told I owe nearly £700 extra to what I pay monthly. They are under the impression I am paid 13 times a year due to fluctionations on wage slips. However this is not true. It is just may pay day changes each month….

    I’ve called the company I’m set up with three times about this and every time I was told I would get a call back due to the person dealing with my case and I’ve heard nothing from them since. Being under this company for my Iva has caused me more stress than being in the debt I was in.

    Is there any advice you could give on what would happen if I requested to leave the Iva and start with someone new. If this is possible and how I would go about it. Or what my other options would be.

    Many thanks

      Hi Keira

      I find it strange that you are unable to convince your IVA company that you are only paid 12 times but just at different times every month. One way to do this would be to show them a copy of your P60 from last April. That would confirm the exact amount you have been paid over the last year and prove what you are saying is correct.

      If you are simply unable to find a way forward then unfortunately as discussed in the article above it is not possible to change your IVA company. However you could stop the Arrangement (let it fail) and then do something else.

      One option might be to start a new IVA. However before making this decision remember the payments you have already made might well be lost so you would be starting from the beginning again. Alternatively to avoid paying for another 5-6 years you could consider bankruptcy particularly if you are not a home owner.

    Andy says:


    I took and IVA out nearly 3 years ago. After 1 year the company I was dealing with was changed to another this allowed? The IVA practitioner I’m currently using give me no payment where due to increase this month. They told me last December but I did forget. I’m frustrated because I thought a little reminder wouldn’t of hurt. I’m now behind on my payments. I have also been awarded ppi but the IVA people do not know what has happened to this correct?

      Hi Andy

      I will take your questions in turn:

      1. It is allowed for an IVA company to transfer your agreement to another. This can happen when the first business decides to close or stop dealing with IVAs. There would have been provision for this in the terms and conditions of your IVA so it is quite legal. The way the transfer was managed will depend largely on the efficiency of the company your IVA has been transferred to. Unfortunately it sounds as though in your case this was not great.

      2. I am surprised that your new IVA company did not remind you about increasing your payments. I agree with you, I think a more timely reminder would have been good.

      3. If you have been awarded PPI then this money will quite rightly be paid to your IVA company. As standard, they will normally take 15% of the sum received as their fee. The rest should have been paid to your creditors.

      It seems as though you are quite frustrated with your IVA company. However I am afraid there is little or nothing you can do about this. As discussed in the article above, you can’t decide to move your IVA to another company yourself. If you get to a point where you feel you simply can continue working with them, your only option is to cancel your IVA and either start again or use a different solution (perhaps bankruptcy if you are not a home owner). However this would be a shame given you have already paid for 3 years.

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