A failed, or terminated, individual voluntary arrangement (IVA) is different from one that completes. Your creditors are no longer bound by its terms, so debts included in the arrangement can become chaseable again, and there is no completion certificate to show a lender or adviser. Remortgaging is not ruled out, but fewer lenders are likely to consider your application, and rates are often higher than high-street rates.
This page covers what to expect if your IVA has failed and how it may affect a future remortgage. If your IVA has completed successfully, see remortgaging after a completed IVA instead. If you are worried your IVA might fail, speak to your supervisor as early as possible, or get free advice from MoneyHelper, StepChange or National Debtline.
On this page
This page covers
- Credit issue
- Individual voluntary arrangements (IVAs)Usually stays on your credit file for 6 years from the start date.
In short
- A failed IVA usually means no completion certificate and debts that can become chaseable again.
- The IVA still stays on your credit file for 6 years from its start date, whether it completed or failed.
- Fewer lenders are likely to consider a remortgage soon after a failed IVA.
- Speak to your supervisor and a free debt adviser as early as possible if things are going wrong.
Why do IVAs fail?
An IVA can fail, or be terminated, for several reasons: missed or reduced contributions without agreement, not complying with a review such as an equity release clause, or a change in circumstances that makes it unworkable. Your supervisor usually gives you a chance to put things right first. If it is still terminated, they issue a certificate of termination rather than a completion certificate, and the legal protection from your creditors generally ends.
How does a failed IVA differ from a completed one on your credit file?
| Point to consider | Completed IVA | Failed IVA |
|---|---|---|
| Document issued | Completion certificate | Certificate of termination |
| Debts included | Cleared under the terms of the arrangement | May become chaseable again by creditors |
| Time on credit file | 6 years from the start date | 6 years from the start date |
| Insolvency Register | Removed 3 months after completion | Also removed, though the timing can vary. Check your own case. |
| What may follow | A fresh start once the file clears | Creditors may pursue debts, and in some cases petition for bankruptcy |
A general guide for IVAs in England, Wales and Northern Ireland. Check your own circumstances with your former supervisor or a free debt adviser.
Can you still remortgage after a failed IVA?
It can be possible, but a lender is likely to view a failed arrangement less favourably than one that completed, partly because there is no certificate confirming it was resolved and partly because underlying debts may still be outstanding. Some lenders may want to know what happened to the debts that were in the IVA before they will consider an application.
If creditors have resumed chasing debts, or you now have new defaults or a CCJ as a result, understanding your position first tends to make a remortgage application more straightforward later.
What are your options if your IVA has failed?
What comes next depends on why it failed and where your finances stand now.
- Ask your former supervisor why the IVA ended and what has happened to the debts it covered.
- Get your statutory credit reports from all three agencies to see exactly what is now showing.
- Speak to a free debt adviser about whether a new debt management plan, a debt relief order or bankruptcy suits your situation, comparing options on our guide to debt solutions compared.
- Keep your mortgage payments up to date if you can, as this usually matters more to a future application than the IVA itself.
If a failed IVA led to bankruptcy, see remortgaging after bankruptcy. If you moved onto a DMP instead, see remortgaging with a debt management plan.
Is your home at risk if your IVA fails?
An IVA and your mortgage are usually separate, so if your mortgage payments have stayed up to date, a failed IVA does not directly put your home at risk in the way arrears or repossession would. The risk tends to come indirectly, for example if unresolved unsecured debts lead to a CCJ or a charging order. If your mortgage itself is becoming hard to keep up, contact your lender early: lenders must treat struggling borrowers fairly, and free advice from MoneyHelper or National Debtline can help you weigh up what to do next.
What may affect a remortgage after a failed IVA
| Factor | Why it matters |
|---|---|
| Why the IVA failed | Missed contributions are viewed differently from an unresolved equity review or a change in circumstances. |
| What happened to the debts | Whether creditors have resumed action, obtained judgments, or the debts remain in limbo, all affect the picture a lender sees. |
| New credit issues since | Defaults or CCJs arising after the IVA failed are likely to be looked at closely alongside the IVA itself. |
| Mortgage payment history | Keeping your mortgage up to date, both during and after the failed IVA, is one of the strongest points in your favour. |
| Time since the IVA failed | As with any credit issue, options tend to widen the longer ago it happened and the cleaner your record has been since. |
| Equity and loan to value | A lower LTV generally widens your choice of lenders willing to consider the application. |
| Income and affordability | Lenders assess your current income and outgoings, including any new debt repayments taken on since. |
| Whether bankruptcy followed | If the failed IVA led to bankruptcy, see our page on remortgaging after bankruptcy for how that is assessed instead. |
These are general points, not lender rules. Each lender sets and changes its own criteria.
Information an adviser may ask for
You don’t need all of this to make an enquiry. It helps to know where to find it, because an adviser is likely to ask about most of it.
- Your IVA start date and the date it was terminated
- Your certificate of termination, if you have a copy
- A list of the creditors that were included and their current status
- Credit reports from Experian, Equifax and TransUnion showing what is now recorded
- Details of any new defaults, missed payments or county court judgments since
- Your mortgage balance, deal end date and payment history
- Proof of income and a summary of your current outgoings
Frequently asked questions
Does a failed IVA stay on my credit file for longer than a completed one?
No. Both stay for 6 years from the IVA’s start date, whether it completed or failed. What differs is what a lender sees alongside it, such as whether the underlying debts were resolved or are still outstanding.
Can a creditor get a county court judgment against me after my IVA fails?
Yes, once the IVA’s protection has ended, creditors can pursue unpaid debts through the normal legal process, which can include a CCJ. If that happens, our page on remortgaging with a CCJ explains how it is generally viewed.
Can I start a new IVA if my last one failed?
It is sometimes possible, depending on why the first one failed and your current circumstances, but it is not guaranteed. Speak to a free debt adviser or an insolvency practitioner about whether a new IVA or another debt solution fits your situation.
Should I get advice before applying to remortgage after a failed IVA?
It is worth it. A specialist adviser can look at exactly what is on your file and whether it is realistic to apply now or better to wait. Free, impartial debt advice from StepChange or National Debtline can help if debts from the IVA are still unresolved.