While entering an IVA means you’re committing to maintaining regular monthly contributions towards your debts, it is possible in certain circumstances to request a payment break. 



What is an IVA payment break?



An IVA payment break is a temporary pause in the monthly contributions to your IVA, which can be processed without the need for creditor approval. 

A payment break has to be requested by the debtor (you) and permission for the payment break is at the sole discretion of your IVA provider (Parkfield Insolvency). 

The idea behind a payment break is to help you deal with a change in your financial circumstances during the course of your IVA. 

As long as you can prove your financial circumstances have materially changed, and this change is having an impact on your ability to meet your contributions, we will consider the evidence and may be able to grant you a payment break.

When should I ask for an IVA payment break?



We understand that your circumstances may change during the course of your IVA, and if you fall into financial difficulty you may struggle to keep up with your monthly contributions. 

If you find yourself in that situation, you may be able to request a payment break, however they’re not suitable for every scenario. 

If you’ve already missed a payment

Missing an IVA payment is a breach of your arrangement, and may leave you at risk of IVA failure. If you’ve already missed an IVA payment, get in touch with us straight away and we’ll take it from there. 

If you’re experiencing temporary money issues

If you’re in short-term financial trouble that’s causing you to struggle with your payments, it may be possible for us to grant you an IVA payment break in order to give you the breathing space you need to deal with your money issues. 

Will I need evidence to support my payment break request?



Yes. While we know that financial emergencies happen, we will still need to see any evidence you can provide to support the fact that you are unable to meet your IVA payments. 

• If your car breaks down and you have to pay to have it fixed, make sure to keep the receipt
• If you’re having problems with your bank account and it’s preventing us from taking payments, request a letter from your bank to confirm this



The more evidence you can provide us with, the stronger the case you’ll have, and the more likely you’ll be to be granted a payment break until you get back on your feet. 

How long will my IVA payment break last?



Under the revised IVA protocol from the 1st of October 2016, there are different limits on the length of an IVA payment break, depending on when your IVA started. 

• If you entered an IVA before October 2016 you could be entitled to an IVA payment break of up to 6 months
• If you entered an IVA after October 2016 you could be entitled to an IVA payment break of up to 9 months

Much like the decision to grant the payment break, the exact length of the payment break will need to be agreed with Parkfield Insolvency.

Once we’ve settled on an agreed payment break term, your IVA will then be extended by the same length of time. So if you take a payment break of 4 months, your IVA will be extended by 4 months. 

What if I’m having long-term financial issues?



If you find yourself experiencing serious money issues during your IVA, and those issues are unlikely to be resolved any time soon, a payment break is unlikely to help.

You would be better served taking one of the following courses of action:

Reducing your monthly IVA payments

At Parkfield Insolvency, we will never force a client to make IVA payments they can’t afford. Your IVA payments are based entirely on your affordability. That means if your income changes, your arrangement should change in line with it. 

If you experience a change in your circumstances, it’s important you get in touch with us to let us know. We will then work with your Insolvency Practitioner to recalculate your income and expenditure in order to make your monthly contributions affordable.

Ending your IVA early

If you find yourself in the situation where you’re unlikely to be able to afford your IVA contributions, even in the event of a payment reduction, it is possible to end your IVA early. 

Similar to requesting an IVA payment break, we would expect you to give a good reason for being unable to manage your IVA, for example a disability or serious illness. and to be able to provide strong evidence supporting it. 

We will then take that evidence to your creditors and present your case. If they agree that you qualify for early termination, your IVA will end and your remaining debt will be written off, leaving you free of any debt that was included in your arrangement.