New IVA Protocol 2025
IPA Insolvency Practitioner newsletter, April 2025
The revised Individual Voluntary Arrangement (IVA) Protocol 2025 has now been published and is in effect from 31 March 2025 (published on 2 April 2025). A new IVA factsheet for consumers has additionally been published, and Annex 4 has been withdrawn.
Until 30 June 2025, both the 2021 and 2025 IVA Protocols may be used, but from 1 July 2025, all new IVAs must follow the 2025 Protocol.
Read full information from the Insolvency Service at the bottom of this article.
The revised IVA Protocol 2025 introduces significant changes aimed at improving outcomes for individuals entering IVAs.
Key updates include:
- Greater clarity on suitability, ensuring individuals with low debt levels are directed toward more appropriate solutions such as Debt Relief Orders or Debt Management Plans
- Changes to home equity provisions, removing the family home from IVA realisations while adjusting the length of IVAs based on equity levels
- Increased discretion for Supervisors, allowing payment holidays and reductions without creditor approval, improving the flexibility of IVAs
- Stronger consumer protections, ensuring terminations lead to signposting for free, regulated debt advice and timely issuance of completion or termination certificates
The IPA welcomes these steps but recognises that more reform is needed to improve IVA completion rates. We will continue to monitor the impact of these changes and use our findings to push creditors and stakeholders toward further improvements that enhance the sustainability of IVAs.
We believe that greater flexibility is essential to delivering fair and consistent outcomes for individuals who seek an IVA as a legislative, self-funded compromise, that freezes further interest and charges while allowing repayment at a level that is both manageable and sustainable.
Additionally, the IPA is committed to greater transparency in the performance of all debt solutions. Individuals must have access to clear data on completion rates and long-term outcomes to ensure they are choosing the most appropriate solution. We will continue to engage with regulators, creditors and stakeholders to drive improvements in reporting and oversight, ensuring individuals receive informed, high-quality debt advice.