Maternity Leave during an IVA

Maternity Leave during an IVA

If you go on maternity leave during an IVA your income is likely to fall. As a result your payments may have to be suspended until you get back to work.

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Can IVA Payments be suspended during Maternity Leave?

If you become pregnant and go on maternity leave your household income will normally go down. When this happens it is likely that you will no longer be able to afford your ongoing IVA payments.

This does not mean the Arrangement is at risk of failing. However you will need to speak to your IVA company and agree what to do. The most common solution is take a payment break. In other words stop your payments altogether until you get back to work.

If you can still afford to make ongoing payments an alternative might be to continue doing so but at a reduced rate. Your IVA Company would have to agree this with your creditors. It would normally go hand in hand with an extension of the Arrangement.

While you are on maternity leave you could take a Payment Break from your IVA. If you do the payments you miss will be added at the end.

What happens to your IVA Payments after you return to Work?

Once you return to work after your maternity leave your payment break will stop. In theory you then just start making your normal monthly payments again. However in reality it is unlikely you will be able to afford this.

The reason is that both your income and living expenses will have changed. Your wages may have fallen because you have gone back to work part time. There will also be changes to any benefits you receive. Your expenses are likely to have increased with a new baby to clothe and feed and also the possibility of additional child care to pay for.

Given this your IVA Company will have to carry out a full review of your income and expenses budget before your payments can restart. If your disposable income has fallen reduced payments must be agreed with your creditors.

If you need to reduce your IVA payments after maternity leave the length of your Arrangement will also be extended. This could be by 12 months or more depending on the reduction.

Options if you do not go back to work after Maternity Leave

At the end of your maternity leave you may decide that you will not or cannot go back to work. Alternatively you may return to work but your income is too low to be able to afford ongoing IVA payments.

In these circumstances your IVA Company might be able to complete your Arrangement based on the payments you have already made. However this is unlikely unless you were already nearly at the end of the Arrangement before you had your baby.

Alternatively you could look to settle the agreement early. To achieve this you or a third party will need to come up with a one off lump sum payment. However the alternative to this could be that the Arrangement will fail.

If you are unable to continue paying your IVA after taking maternity leave and it cannot be settled early it may fail. You would then have to consider a different solution for dealing with the outstanding debt.

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10 thoughts on “Maternity Leave during an IVA

    Lara says:

    I’m currently on maternity leave but due to go on unpaid leave at the end of the month which then I will be ending my contract due to child care. I will not be able to afford living expenses along with my IVA in my new circumstances what do I do?

      Hi Lara

      If you are unable to maintain your IVA payments going forward you may need to consider stopping the agreement and managing your debts in a different way.

      If you are not a home owner, one option that would make your like much easier might be to go bankrupt. It sounds bad, but it could be an ideal solution. This is because the debt you owe is simply written off and you are unlikely to have to make any further monthly payments towards the debt at all.

      If you would like to have a chat to discuss your options please do give me a call. I can be contacted on 0800 011 4712

    Jillg says:

    Hi I am due to have a yearly review with my Iva company. I started with earnings of £1100 a month and paying £100/mth. Then I had a baby and went on statory maternity leave pay which was £500 per month. I still managed to keep up my IVA payments. I went back to work in Feb this yr earning £900 a month. When I do my nect review, because my income has now gone up from £500/mth to £900 will they want to increase my payment?

      Hi Jillg

      I understand what you are worried about. You think that because you were able to maintain your payment of £100/mth when your income went down, your IVA company will look at this recent change in isolation and say you can pay more because your income has gone up. I don’t think you have to worry. I am sure they will realise that you are no better off now than when you started your IVA.

      I assume that you now also receive child benefit? In your review, remember to mention this additional income. But overall I would be pretty sure your surplus income will be no better than it was when you started the Arrangement so your payments should stay exactly the same at £100/mth.

    Tara says:


    I am currently 4 months into an IVA paying £100 a month. I have made every payment so far, however I am now pregnant (with twins) and have been off sick for a few weeks with this pregnancy. I expected it to go back to normal but it doesn’t look like it will anytime soon. Because I have been off sick, I might not be entitled to SSP. What happens with my IVA in this case? I still want to continue with it, however maybe at a reduced rate?

      Hi Tara

      You have some options here.

      First you need to speak to your IVA company and explain the issue. They might be able to give you a payment break meaning you can suspend your IVA payments during you maternity leave. You should be able to take up to 9 months of payment breaks during your IVA which are then added to the end.

      The alternative to the payment break is asking your IVA company to permanently reduce your payments. However, generally speaking, the minimum monthly payment required for an IVA is £100/mth. As such they will not be able to reduce your payment by much if anything. Also reducing your payments will mean that they extend the length of the entire agreement for 12-24 months which you may not be happy with…

      If your IVA company is unable to come up with a solution you can agree to, the final (and perhaps best) option will be to consider cancelling your IVA and choosing a different solution more suited to your current situation. See if your IVA company can help first. But if you want to discuss this option, by all means give me a call (0800 011 4712). The advice is free and confidential.

    Georgee says:

    Hi, I was wondering if someone could help me. I’m currently in an IVA. It’s due to complete October 2023 but It’s time for my annual review! I’ve really messed up and wondered if someone could advise me the best option.

    I finished maternity in June and have since been officially unemployed however, been working for my boyfriend and he has paid me and sent money to cover our child care etc. now it’s time for me to submit my last 3 months and my statements just seem a mess but also unsure what to put as my income?

    As of October I’m now officially employed should I put my new wage on income and expenditure? Could I wait 3 months and upload the new statements with my new salary on or what should I do please it’s making me so anxious.

      Hi Georgee

      Thank you for your query (below).

      When you complete your annual review, you should include your income and expenses as they will be from now on. In other words, include your new wage.

      If your IVA company asks about any transactions on your bank statement since June, you should simply say that your boyfriend has been supporting you while you have been unemployed and you received payments from him as such.

    ChloeLV says:

    Hi I have an IVA and am pregnant will it fail due to maternity leave

      Hi Chloe

      I confirm that your IVA should not fail due to your maternity leave.

      Normally you can either reduce your payments during this period or take a break from the payments altogether. Then you start paying again when you go back to work.

      If you decide not to go back to work or go back part time and can no longer pay your IVA, then, depending on your circumstances, you might consider cancelling and using a different solution.

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