Insolvency Service revises IVA protocol for ‘greater clarity’

The Insolvency Service has published a revised Individual Voluntary Arrangement (IVA) protocol, with the aim to improve the service currently offered to people in debt. 

An easy-to-read ‘key facts’ document has been included in the new protocol, and will be given to people in debt before they sign up to an IVA. 

According to the government department, this revision to the IVA protocol gives greater clarity to insolvency practitioners about their responsibilities when giving advice about IVAs. 

The update comes as a result of a collaboration between the Insolvency Service, regulators, the trade association R3, creditors, providers and charities, following 2024 research which found poor practice among some IVA providers. 

Claire Hardgrave, the head of insolvency practitioner regulation for the Insolvency Service, said: “It is vital that people with debt problems are always given quality advice. At the same time, insolvency practitioners need access to clear guidance in order to provide the best service possible. Since the publication of our report, we have been working with regulators and have met with Insolvency Practitioners to discuss our plans. 

“This protocol provides much-needed safeguards and transparency for all concerned, ensuring there are fewer grey areas for the practice, and that people in debt are supported from the very start.”

Marcial Boo, chief executive of the Insolvency Practitioners Association, added: “It is vital that insolvency practitioners meet high standards when supporting people in financial distress. The revised IVA Protocol marks a significant improvement in the framework for the fair, efficient administration of consumer IVAs, including changes that the IPA, as the largest regulator for the sector across the UK, has long been advocating for.  

“We will continue to work with the Insolvency Service and others to ensure that the new protocol is applied in practice to bring benefit to debtors and creditors alike.”