Yes, you can travel abroad with an IVA. There’s no legal restriction on leaving the UK for holidays or work. This is different from bankruptcy, where you may need to surrender your passport in some cases.
However, your budget is scrutinised. A luxury holiday doesn’t fit a budget that shows you can’t afford to pay creditors more. Here’s what you need to know about travel, moving abroad, and IVAs.
Can You Go on Holiday with an IVA?#
There’s nothing in an IVA agreement that prevents you from travelling or going on holiday. You can leave the country whenever you want.
But—and this is important—any holiday must fit within your approved budget.
When your IVA was set up, your Insolvency Practitioner calculated your monthly payment based on your income minus essential living costs. Those living costs include a small allowance for “leisure and recreation”—usually £50-100 per month depending on your circumstances.
If you save that allowance over several months, you can afford a modest holiday. That’s fine. Your IP won’t question it.
What your IP will question is if you suddenly book a £3,000 holiday to the Maldives when your budget shows you have £50/month spare. That doesn’t add up.
What’s a “Reasonable” Holiday?#
A reasonable holiday is one that:
- Fits your approved budget
- Doesn’t require you to take on new debt
- Doesn’t suggest you’ve hidden income or received an undeclared windfall
Examples of reasonable holidays:
- A week in Spain or Portugal booked with savings from your leisure allowance
- A UK staycation or camping trip
- Visiting family abroad if you’ve saved for it over time
Examples of unreasonable holidays:
- A luxury cruise when you’re supposed to be unable to afford higher IVA payments
- Business class flights and five-star hotels
- Multiple expensive holidays per year
Use common sense. If you’re in an IVA because you can’t afford your debts, spending thousands on holidays will raise red flags.
Work Travel Is Fine#
If you travel for work—business trips, conferences, client meetings—this is completely unrestricted. Your employer pays for work travel, and it doesn’t come from your personal budget.
Just keep your IP informed if you’ll be abroad for an extended period. They may need to contact you, and they’ll want to know how to reach you.
Moving Abroad: More Complicated#
You can move abroad while in an IVA, but it’s more complex than going on holiday. You must continue making your monthly payments for the full term, regardless of where you live.
You Must Inform Your IP#
If you’re planning to emigrate or relocate permanently, tell your IP as soon as possible. They need to:
- Update your contact details
- Reassess your budget based on your new living costs (if applicable)
- Ensure you have a way to continue payments from abroad
Your IP may require a variation meeting if your circumstances change significantly. For example, if you’re moving to a country with much higher living costs, creditors may agree to reduce your payment. If you’re moving somewhere cheaper, they may expect an increase.
Different Living Costs#
If you move to a country with a higher cost of living (Switzerland, Norway, Singapore), you might struggle to maintain your current IVA payment.
Your IP will reassess your budget, but there’s no guarantee creditors will agree to a reduction. They may argue that moving abroad was your choice and you should have factored in the cost.
Conversely, if you move somewhere with a lower cost of living (Thailand, Portugal, parts of Spain), creditors may expect your payment to increase because your essential costs have fallen.
Currency and Payment Logistics#
You’ll need to set up a way to pay your IVA from abroad. Most IPs accept international bank transfers, but you’ll be responsible for any transfer fees.
Currency fluctuations can also affect you. If you’re paid in a foreign currency and the pound strengthens, your IVA payment becomes more expensive in your local currency.
Returning to the UK#
If you move abroad and later return to the UK, you must inform your IP immediately. Your budget will be reassessed based on UK living costs again.
Emigrating to Avoid Your IVA: It Doesn’t Work#
Some people think they can emigrate and just stop paying the IVA. This is a terrible idea.
If you stop making payments:
- Your IVA fails
- You owe the original debt again, plus interest from the date you first entered the IVA
- Creditors can pursue you for the debt, even if you’re abroad
- If you ever return to the UK, they can take legal action immediately
- You may face bankruptcy proceedings
Debts don’t disappear when you leave the country. UK creditors can pursue debts internationally, and if you return, they’ll be waiting.
Selling or Renting Your UK Home#
If you move abroad and sell your UK home, any equity above the threshold (currently £10,000 at 85% LTV under the 2025 Protocol) must be paid into the IVA.
If you rent out your home while abroad, the rental income counts toward your income. Your IP will reassess your affordability, and your IVA payment may increase.
Always discuss these scenarios with your IP before making decisions.
What If You’re Already Abroad When You Apply for an IVA?#
If you live abroad but want to apply for a UK IVA (for example, you still have UK debts and UK income), this is more complicated.
You’ll need to meet the residency criteria:
- You must have lived in England or Wales within the last three years
- Or you must have had a business in England or Wales within the last three years
If you’re a British expat with UK debts and UK income (perhaps from rental property or a UK pension), you may still qualify. Speak to an IP about your specific situation.
Frequently Asked Questions#
Do I need to tell my IP every time I go on holiday?#
It’s good practice to inform them, especially if you’ll be abroad for more than a couple of weeks. They may need to contact you, and they’ll want to know how to reach you. For short holidays (a week or two), a quick email or phone call is usually enough.
Can I use a windfall to pay for a holiday instead of putting it into my IVA?#
No. Windfalls must be declared to your IP and are almost always used to pay down your IVA. Using a windfall for a holiday would be a breach of your agreement.
What if I move abroad and can’t keep up with payments?#
Talk to your IP immediately. They may be able to arrange a payment holiday or reduction (up to 20% under the 2025 Protocol). Ignoring the problem and letting your IVA fail is the worst option.
Can I move to Scotland, Northern Ireland, or another part of the UK?#
Yes, absolutely. Your IVA remains valid wherever you live within the UK. Just inform your IP of your new address so they can update their records.
What happens if I get a job abroad with much higher pay?#
Your IP will reassess your income. If your earnings increase significantly, your IVA payment will likely increase. Remember, if your income goes up, typically 50% of the increase goes to the IVA. You keep the other 50%.
Need Help with Your IVA?#
If you’re not already in an IVA but think it might help, use our free IVA calculator to see if you qualify. It takes 2 minutes and won’t affect your credit score.
For more information on how IVAs work, read our guide: What is an IVA?
To understand the pros and cons before committing, see our IVA Pros and Cons page.