Can I go on a summer holiday during an IVA?

There is nothing to prevent you from going on holiday during an IVA and the Arrangement does not stop you from travelling. This could be for either business or pleasure.

No one expects you to be a slave to your creditors. You are free to decide how you spend your money. Of course, it is vital that you make sure you have covered the payments of your living expenses and your IVA payment but after that, you are free to spend your money on whatever you wish. Your Licensed Insolvency Practitioner will not issue rules or obligations as part of your IVA, which means you will be able to go on holiday. You are working hard and living within your means, so winding down and relaxing on a holiday could be a good thing.

  • You do not need to inform your IVA Practitioner if you want to can travel in the UK or go abroad. As long as you are away temporarily.
  • Do not spend overtime or a bonus on a holiday without speaking to your IVA Practitioner. Some of the extra money you have earned may have to be paid into your arrangement. You can keep anything you earn up to 10% of your normal take-home pay in any given month. After that 50% of any extra must be paid into your arrangement.
  • Borrowing for a holiday during the IVA is not allowed and is likely to get you into further debt problems. It will mean you struggle to maintain your IVA payments and could put the whole arrangement at risk of failure.
  • Paying for a holiday does not normally fall into the emergency category within an IVA.
  • If you have already paid for the holiday before you start the IVA, there is nothing to stop you from going. Even if you have paid for the holiday with a credit card.
  • It’s all about moderation. Three cruises and a stag party in Las Vegas might set the alarm bells ringing.
  • If in doubt always speak to your Insolvency Practitioner who is there to offer practical support and advice to help make sure your IVA succeeds. 
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