There is nothing to stop you going on holiday while you are in an IVA. Generally speaking the only issue will be how to fund the break.

Included in this article:

• Are you allowed to go on Holiday in an IVA?
• What options do you have to pay for the Holiday?
• Can it be funded with a Payment Break?

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Are you allowed to go on Holiday during an IVA?

Once your IVA has been accepted your obligation is to maintain the payments as agreed and co-operate with the Insolvency Practitioner (IP). As long as you do this you will be left alone to manage your life as you see fit.

As such there is nothing to stop you going on holiday. If you are working you can book annual leave and take time off in the same way as any one else.

Your IP does not need to know where you are and you do not need to tell them before you travel. This would only be required if you plan to stay away for a long period of time. However it is not necessary if you are just taking a 1-2 week break.

Foreign travel is allowed during an IVA. The purpose of the trip could be either business or pleasure. You do not need to tell your IP unless you are moving permanently.

What options do you have to pay for the Holiday?

The main issue concerning going on holiday during an IVA is how to pay for it. It is unlikely that you will have an allowance for trips in your agreed living expenses budget.

Having said that there is nothing to stop you saving money from your budget if you can afford to do so. You can spend any savings you manage to put aside on a holiday if you like. They do not have to be paid into the Arrangement.

It is also perfectly acceptable for a third party to pay for a trip on your behalf. If you are not in a Joint IVA with your spouse or partner they could pay as long as the funds come from their own income.

You must not borrow money to pay for a holiday during an IVA. If you did you would struggle to pay the new debt back and probably put your whole Arrangement at risk.

Can a Holiday be funded with a Payment Break from your IVA?

A Payment Break is an agreed suspension of your IVA payments. Your IP may allow you to take one of these if you are facing a financial emergency.

However you will not be allowed to suspend your payments for the purpose of paying for a holiday. This is unlikely to be regarded as an emergency and the repayment of your debts should take priority.

You should not stop your IVA payments without agreement. If you did this to pay for a holiday your IP is unlikely to be very understanding. They will normally require you to increase your ongoing payments to make up the difference.

An IP will sometimes let you add payments you miss without agreement to the end of your IVA. However this will only be the case if you were facing a financial emergency.