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You ask, we answer: 5 commonly asked questions about IVAs


It’s no secret that living with debt can be stressful.

From the sleepless nights to the constant worry that the bailiffs are going to knock on the door, day-to-day life can be tough when hiding from money worries.

We’re often taught from a young age that talking about money, especially debt, should be done on a need to know basis only and it is this attitude that makes dealing with debt more difficult.

Sound familiar?

At Creditfix our focus is to break down the stigma surrounding debt and guide people through the journey of finding debt help free of judgement.

We stand by the mantra that debt isn’t complicated. There’s lots to think about when it comes to being in an IVA, so we thought we’d give you a roundup of the answers to the top five questions that you ask every day.

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How are my IVA payments made?

We use the Recurring Card Payment (RCP) method to collect your payments each month/week. We store your debit card details into our system and a card payment will be taken for your contribution on its due date, much like how you pay for your Netflix each month.

It’s also important to note that we currently do not have the facility to take manual payments over the phone or online. If you are in need for a payment to be made, we can set this to be taken automatically for you, even if it’s a one off.

Can I add debts to my IVA once it has been approved?

In short – yes. However, this is dependent on when the debt was accrued.

Should you forget to include a debt in your IVA set up, or if an old debt pops up once you are in your arrangement, this can be brought in. All you need to do is sent us a copy of any correspondence from the lender showing the reference number and amount owed.

We will then contact them to make them aware of your insolvency. If the amount is high, we may need to ask your creditors to allow the debt to be included.

If you have debts that have been taken out after the approval of your IVA, or a debt that is found to be fraudulent, this cannot be included. In these instances, we will request you to set up a payment plan to the debt and alter your IVA accordingly.

What happens if my circumstances change once in my IVA?

We understand that a person’s situation is not going to stay the same for five years, and we’re always prepared for this.

If your circumstances change whilst you are in your IVA, it’s very important to notify us. IVAs are based on your affordability, and we will never ask you to make payments you can’t afford.

We can review your finances and adjust your case to suit, re-calculating your income and expenditure in order to make your payments affordable.

If it is a temporary change, you also have the option to request a break from your payments until it is resolved. However, if you choose to go down this route, we will require evidence of the reason you are unable to pay.

What do I do if I earn additional income?

The answer to this question can be found in your proposal, however, it can be easy to miss amongst all the other information being put in front of you.

When it comes to additional income such as a bonus or overtime, it can seem a bit confusing. The rule goes that you are able to earn 10 per cent above your take home wage each month, anything above this is then split 50/50 between you and your IVA.

Now, that sounds quite complex, so let’s use an example to help:

If you earn £1,000 per month (after tax), 10 per cent of this would be £100 – meaning you can earn up to £1,100 without having to notify us. Say you then work a lot of overtime hours one month and earn £1,400 – you would still be able to keep £1,100 and the remaining £300 would be split, meaning you pay £150 into your IVA and keep the other £150.

To save you working this out, our best advice in these instances is to send us the details of your extra income and we will calculate this for you.

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Can I take out credit once I’m in an IVA?

Once you are in your IVA, your credit options are limited.

It is possible for you to borrow money, but only up to £500. Anything above this requires permission from the Insolvency Practitioner (IP), which you will need to request in writing along with the reason you are in need of the credit.

If you obtain a high amount of credit without permission, this will be considered a breach of your agreement which can lead to the failure of your IVA.

We don’t encourage clients to obtain further credit, as your arrangement is set up in a way to help you avoid credit throughout. If you find yourself struggling with your finances, it’s always best to contact us as we have ways to help.

If you have a question that we haven’t answered, give us a call on 0808 2234 102. Our friendly advisers are always on hand to help guide you through your IVA and make your journey with us as smooth as possible.

Find out if you qualify for an IVA

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