Money Advice, Debt Advice & Debt Help
I have moved abroad – Can I do an IVA

I have moved abroad – Can I do an IVA

I have moved abroad – Can I do an IVA

If you have moved abroad you can still use an IVA to manage your UK debt. A major downside however is having to maintain the monthly payments which may be a significant drain on your resources.

Included in this article:


Want help to start an IVA? Give us a call (0800 077 6180) or complete the form below to speak to one of our experts

Is it possible to do an IVA after you moved abroad?

After you moved abroad, you may have not been able find work as quickly as expected. You might be working but your living expenses are higher than you thought they would be.

Where this is the case, sending money back to the UK each month to pay debt is definitely going to be more difficult.  An IVA can help in these circumstances.

Once the Arrangement is in place, your monthly UK debt payments are reduced to a single affordable amount. You pay as much as you can afford for 5 years. After this any outstanding debt is written off.

In order to qualify you have to apply within 3 years of leaving the UK. In addition, you will need to be able to afford a minimum payment of at least £100/mth into the Arrangement.

Struggling to get your head round all of this? We can help. Call us (0800 077 6180) or complete the form below. The advice is free and confidential.

Do you have to return to the UK to apply for an IVA?

It is not necessary to return to the UK to apply for an IVA. You can complete the application process remotely.

You will need to have at least 1-2 conversations about your circumstances on the telephone. To reduce costs, you can do this using Whatsapp, Zoom or the like.

You will need to e-mail copies of various paperwork to support the information you give about your circumstances. In particular, you will have to prove your income with local wage slips or bank statements.

Once in place, you will have to make the agreed payments into your IVA in UK Pounds. You therefore need to include the cost of international bank transfers in your living expenses budget.

You must also consider possible exchange rate fluctuations. Remember, if the pound increases in value, your payments will become more expensive.

How is your credit rating affected in your new country?

If you start an IVA, a record of the Arrangement will be recorded on your credit file in the UK. This will make your Credit Rating in the UK poor.

However, you should not be affected in your new country. This is because credit reference agencies do not have the facilities to check your credit rating in different countries.

Given this, you are likely to be able to get credit in the country where you are living now without a  problem. Your ability to get things such as a local mobile phone contract or bank account should not be affected.

Under the terms of your IVA you are not allowed to borrow more without the agreement of your IP. Given you live abroad you may be able to do so. However it is ill advised. Borrowing more may mean you struggle to pay your IVA and put it at risk.

Would it be better to go Bankrupt?

Using an IVA to manage your UK debt after you have moved abroad can be a major burden. Even though the monthly payment is reduced, it can still be a considerable drain on your finances.

In addition, an annual review of your income and expenditure will be carried out every year you are in the Arrangement – normally 5 years. If your income goes up, you will have to pay more. You will find this situation increasingly restrictive.

Given these disadvantages, before committing to an IVA, you should also consider the option of going bankrupt.

If you go bankrupt before you move abroad, all of your debt will be written off. In addition, you may not have to make any further payments towards your debt at all.

The fact that you are bankrupt in the UK will not affect your status in the country you are now living in. Your local credit rating is not affected. For this reason, your local bank, employer or landlord will not find out unless you tell them.

Need further advice about starting an IVA or going bankrupt if you have moved abroad (or are planning to do so)? Call us (0800 077 6180) or complete the form below.

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    4 thoughts on “I have moved abroad – Can I do an IVA

    1. Rachael says:


      I currently live in Amsterdam and have been trying to contact companies with regards to an IVA for debts in the U.K. but the companies I have spoken to have said they can’t help me as I don’t live in the U.K at the moment. I saw this section on your website about setting up an IVA from abroad, is this still possible? I don’t understand why other companies have told me it isn’t possible as I have only been living in Amsterdam for a month.

      Thank you.

      1. James Falla says:

        Hi Rachael

        As highlighted in the article above it is possible to start an IVA if you have moved elsewhere in Europe as long as you moved within the last 6 months. Please do contact us at BeatMyDebt (0800 077 6180) and we will be happy to help you.

        I cannot speak for all IVA companies. However I suspect the reason you have been turned down by others is the simple fact that doing an IVA for someone living abroad is slightly more complicated and slightly more risky (in terms of you not completing the arrangement) than if you were living in the UK. As such many IVA companies simply say they cannot help because it is too hard and difficult for them.

    2. Korben says:


      I have quite a bit of debt in the UK and I am moving back home to Australia next month (dual citizen).

      I want to try and start as fresh as possible after the move and came across an IVA. I understand I will still have to make monthly payments but the majority of the debt will be wiped off, is that correct?

      1. James Falla says:

        Hi Korben

        You could certainly consider an IVA and maintain the payments from abroad. You are right, quite a bit of your debt would be written off. However you would still have to maintain monthly payments for 5-6 years and provide income and expenses information annually during that time.

        One of the issues of the IVA option is that once you get home, you are likely to find it tough to keep up with your payments (and restrictions). For this reason, the option many of my clients go for is actually to go bankrupt before they leave the UK. Given you have no property, you have nothing to lose. 100% of your debt is written off and it is extremely unlikely that you will have to make any further monthly payments towards your debt at all. In addition your credit rating in Australia is not affected. It basically means you are free to move on with your life.

        If you would like to discuss both the IVA and bankruptcy options in more detail, I would be very happy to speak to you and give you further advice. Give me a call: 0800 077 6180. I can assist you which ever solution you decide to go with.

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