IVA Protocol 2025 — One Year On: Did the New Rules Work?

When the Insolvency Service introduced a revised IVA Protocol in July 2025, research had found evidence of poor practice in 60% of terminated IVAs. Nearly a year on, here is what the new rules actually require — and, crucially, how to check whether an IVA proposal in front of you meets them.

What an IVA is

An Individual Voluntary Arrangement (IVA) is a formal, legally binding agreement to repay your debts over a set period — usually five or six years — after which any remaining included debt is written off. It is one of the main formal debt solutions in England and Wales, and because it is binding on both sides, getting the right advice before entering one matters a great deal.

Why the Protocol was changed

The July 2025 changes responded to Insolvency Service research which found that around 60% of terminated IVAs showed evidence of poor practice. The market is also highly concentrated — a small number of firms account for the majority of cases, a concentration risk explicitly noted in the protocol. Together, those findings pointed to a need for clearer information for consumers and tighter checks on whether an IVA is genuinely suitable.

What the new IVA rules require

Two changes stand out for anyone considering an IVA:

• A mandatory key facts document, setting out the essential terms, costs and risks of the IVA clearly and up front — before you commit.
• Tighter suitability requirements, intended to ensure an IVA is genuinely the right solution for your circumstances, rather than a default recommendation that happens to suit the provider.

For a sense of scale: IVA volume in 2025 reached 71,855 — the highest annual figure on record — so these rules apply across a very large number of new arrangements.

How to check an IVA proposal meets the rules

If you are weighing up an IVA, you should expect to be given a clear key facts document and a proper assessment of whether it suits your situation — not pressure to sign quickly. Warning signs worth pausing on include being rushed, not receiving the key facts in writing, or an adviser dismissing alternatives out of hand.

Before agreeing to any IVA, get free, independent advice so you can compare it fairly against other options such as a Debt Management Plan or a Debt Relief Order. A regulated adviser can confirm whether an IVA genuinely fits — or whether something simpler would serve you better.