If you’re feeling frustrated with your current IVA provider, you might be wondering whether you can switch to a different company. Perhaps communication has been poor, or you feel like your concerns aren’t being taken seriously.
The short answer is that whilst it’s technically possible to transfer an IVA to another provider, it’s challenging in practice and rarely happens. Before you consider such a drastic step, there are usually better ways to resolve the issues you’re facing.
Can I move my IVA to another company?
Short answer: Technically yes, but it’s rare and extremely difficult in practice.
For a transfer to happen, three key requirements must be met:
- Your current Insolvency Practitioner must resign – You can’t force them to step down
- A new Insolvency Practitioner must agree to take over – Most won’t accept mid-term IVAs
- Your creditors must approve the change, or court approval – Requires a 75% majority vote by debt value, just like when your original IVA proposal was approved, or there will need to be an application to court.
The whole process involves considerable time, paperwork, and administrative costs. Most Insolvency Practitioners won’t take on mid-term IVAs because of these complications, which is why transfers rarely happen.
Can you cancel your IVA and start again with a different company?
You can terminate your current IVA, but this isn’t a straightforward way to switch providers – and it comes with serious consequences.
What happens if you cancel your IVA:
- You lose all legal protection from creditors
- Creditors can start contacting you again
- Interest and charges restart on your debts
- Any paused legal action can resume
- You’re back to the original debt amounts (minus what you’ve paid)
Starting a fresh IVA with a different company means going through the entire application process again. You’d need to propose a new arrangement to your creditors, who would vote on whether to accept it. There’s no guarantee they’ll approve a second IVA, and the new IVA will be for 5 to 6 years, and will not take into account the payments paid into the previous IVA.
Why do people want to change IVA companies?
There are several reasons why someone might become unhappy with their IVA provider:
- Poor communication – Struggling to get through on the phone, waiting weeks for email responses, or getting different answers from different people each time you call. When dealing with something as important as your finances, slow or inconsistent communication can be incredibly frustrating.
- Inflexibility with changed circumstances – You’ve experienced a change in circumstances, like redundancy, you’ve lost your job or reduced hours, but payment reviews drag on for months. Or you’re being asked to increase your monthly payment when your situation hasn’t actually improved, and you feel the provider isn’t listening to your concerns.
- Confusion about fees – You don’t understand how much is being taken from your payments or whether the charges are fair. Transparency around costs isn’t always as clear as it should be.
- Significant life changes – Your personal circumstances have changed dramatically since you started the IVA, and you don’t feel your provider is willing to work with you to find solutions that reflect your new situation.
What You Should Do First Before Changing Your IVA Provider
Before considering the complicated process of switching to a new IVA with a new provider, take these steps to resolve your issues with your current IVA.
1. Raise Your Concerns Directly
Start by contacting your Insolvency Practitioner’s office and explaining exactly what’s wrong. Be specific about the problems you’re experiencing – “I haven’t had a response to my email from three weeks ago about my payment review” is more helpful than “communication is poor.”
If speaking to your usual contact doesn’t resolve things, ask to speak with a manager or the complaints officer. Every IVA provider must have a formal complaint procedure, and they’re required to tell you how to use it if you ask.
Give them a genuine opportunity to put things right. Many issues can be resolved once the provider understands there’s a problem, particularly if it’s down to an administrative oversight or a misunderstanding.
2. Understand Your Rights
You have the right to complain to your IVA provider if you’re unhappy with their service. If they don’t resolve your complaint satisfactorily, you can escalate it to the Insolvency Practitioner’s regulatory body, like the Insolvency Practitioners Association (IPA). You can also contact the Insolvency Service if you believe your IP has acted improperly.
For certain types of complaint, you may also be able to take your case to the Financial Ombudsman Service, though this would only be applicable if your Insolvency Practitioner is also FCA registered.
3. Check If It’s an Isolated Issue
Consider whether you’re dealing with a one-time issue or a recurring pattern of poor service. A delayed response during a busy period or staff holiday is different from consistently being ignored for weeks at a time.
The Covid-19 pandemic affected a lot of IVA providers, with staff working remotely and phone systems disrupted. Some providers experienced staff shortages that impacted service levels. If your issues seem recent, it’s worth checking whether they’re temporary difficulties rather than permanent problems.
Review your IVA agreement to make sure you understand what your provider is supposed to do and what you agreed to. Sometimes frustrations arise from mismatched expectations rather than actual service failures.
4. Get Independent Advice
If you’re still unsure what to do, contact a debt charity or debt adviser for impartial guidance. They can help you understand whether your concerns are reasonable and what options you have.
They’ll also help you think through whether the issue is actually resolvable without taking drastic action.
Sometimes talking to someone outside the situation gives you a clearer perspective on whether you’re dealing with a genuine problem or just a frustrating bump in the road. Professional debt advice can make all the difference in finding the right solution.
The Reality of Transferring Individual Voluntary Arrangements
Even if you’ve exhausted all other options and still want to transfer your IVA, the practical barriers make it almost impossible.
| Barrier | Why It’s a Problem |
| Most IPs won’t accept mid-term IVAs | They don’t know your case history, and there is a considerable administrative hurdle in completing the transfer |
| Creditor or court approval required | 75% majority vote needed – they have little incentive to approve if satisfied with current management; otherwise, you would need to apply to the court |
| Significant costs | Both IPs need time for handover, reviewing files, transferring records – costs come out of your IVA fund |
| Inevitable time delays | Your monthly IVA payments continue, but administrative work is effectively on hold – annual reviews could be delayed |
Transferring an IVA is so difficult that it rarely happens in practice. There are usually better solutions.
Alternative Solutions If You’re Unhappy
Rather than trying to transfer your IVA, there are more practical ways to address the problems you’re facing.
If Communication Issues Are the Problem
- Ask to be assigned a different contact person – Sometimes personality clashes or communication styles simply don’t match
- Request your communication preferences are recorded – If phone calls are stressful but emails work better, make this clear
- Set up regular review meetings or calls – Scheduled check-ins can prevent small issues from becoming bigger frustrations
If Payment Issues Are Causing Stress
- Request a payment break or variation – Provide updated income and expenditure information to support your request if you can’t afford to pay your current amount anymore
- Understand the formal variation process – Your IP needs creditor approval for significant changes, which takes time
- Provide thorough, accurate information quickly – The faster you supply bank statements, payslips, and expense details, the quicker your review completes and the sooner you can resume making payments at an affordable level that reflects your actual repayment capacity
If the IVA Isn’t Working for You
An IVA can be terminated if it’s genuinely not the right solution anymore, but this has serious consequences:
- Your creditors can resume contact and legal action
- Interest and charges restart
- You lose all legal protection
You may need to explore alternative debt solutions if your IVA fails or is terminated. Depending on your situation, this could include a Debt Relief Order or bankruptcy, though neither option should be considered without proper advice.
It’s crucial to get professional advice before taking any action that could end your IVA. Once it’s terminated, you can’t simply restart it, and your options for dealing with your debts may be more limited.
If you breach your IVA by failing to make your payments or not declaring a windfall, your arrangement may fail before you successfully complete it, which could affect your credit rating and make it harder to get a mortgage or other credit in future. An IVA may be challenging at times, but completing it gives you the debt-free fresh start you need.
