Start an IVA if you live outside the UK

If you have moved abroad and now live outside the UK, you can still use an IVA to manage your UK debts. However, you need to meet certain conditions and act within a specific timeframe.

Key takeaways

• You can start an IVA from anywhere in the world. However, you must apply within 3 years of moving outside of the UK. The Arangement only covers UK debts – not debts incurred in other countries.

• Starting an IVA from abroad involves the same process as if you were still living in the UK. There is no need to meet face to face. We communicate with you remotely (normally via whatsapp and e-mail) guiding you through the process from submitting your financial statement to IVA acceptance.

• Regardless of whether you live outside the UK, your IVA is likely to last 5 or 6 years. You will need to be able to maintain a monthly payment of at least £100 per month or be able to offer a one off lump sum.

• While an IVA negatively affects your UK credit file, it does not impact your credit rating in other countries. As such, taking out more credit locally is possible although not advisable.

This guide gives you all the information you need about starting an IVA when living outside the UK. Find out whether this could be the way to manage your debts in the UK.

Includes our case study about Marne who started an IVA in March 2026 after moving from the UK to Canada. Marne’s IVA has meant her UK debt payments have reduced from nearly £900/mth to a significantly more managable £200/mth.

Contents

Can you do an IVA if you live outside the UK?

If you now live outside the UK, you can still use an IVA to help you manage UK debts you are struggling to pay.

Perhaps you underestimated the cost of living in the country you have moved to? Maybe your income is lower than expected?

Whatever the reason, if you don’t have sufficient funds to keep up with your debt payments back in the United Kingdom, an IVA is still available to you. It will help you become debt free.

Does it matter where you live?

You can live anywhere in the world.

You may be in a different European country or have moved to another part of the world. Regardless of where you are, you can still use an IVA to assist you with your UK debt.

You have up to 3 years from the date you started living outside the UK to apply.

You may still be able to get an IVA after this time. However, it will be at the discretion of your creditors.

An IVA can only include debt which you owe in the UK. You can’t add debts incurred in another country.

How do you start an IVA when you already live outside the UK?

It is a relatively simple process to start an IVA if you already live abroad. In fact it is exactly the same as if you were still in the UK.

There is no need to meet face to face. You can carry out all the communication for each step over the telephone or via e-mail. 

There are 3 steps you will need to go through:

1. Complete your Financial Statement
Your financial statement is a summary of your financial circumstances including your income, living expenses, assets and debts.

Completing your statement is one of the most important steps as it provides the foundation for your successful IVA.

We have a lot of experience in helping people who live outside the UK to complete their financial statement correctly. Speak to us start the process.

 2. Propose IVA to your creditors
You can’t do this yourself. You have to propose your IVA to your creditors with the help of a special type of accountant. This person is the Insolvency Practitioner (IP).

Your IP will draft the formal proposal document. They then e-mail this to you for you to review. The IP then sends a copy to each your creditors – the organisations / people you owe money to.

Your creditors are given around 2 weeks to review your proposal.

3. IVA Accepted
Your creditors are likely to accept your IVA proposal as long as it shows you are making your best effort to repay as much as you can.

Only 75% of the value of your creditors who respond to your proposal have to agree. If they do, your IVA is accepted. It is then legally binding on them all – even the ones who reject.

Do you live outside the UK and want to start an IVA? Speak to one of our experts today.

How long will your IVA last if you live outside the UK?

Most IVAs are a standard length of 5 or 6 years. If you live outside the UK, the length of your Arrangement will be the same.

This is important. Before you start your IVA, you should think about whether the payments you agree to will be sustainable.

The minimum payment you will need to be able to maintain is £100/mth. The last thing you want to do is agree to the Arrangement and then not be able to afford it.

If you are worried that you can’t afford the monthly payments necessary for an IVA, you should think about going bankrupt instead. In Bankruptcy, you don’t have to make any monthly payments towards your debts at all if you can’t afford to.

Your IVA payments are calculated in pounds. You will need to send money back to the UK each month (normally to your UK bank account) to pay your agreement.

Case Study: Marne’s Story

Marne’s IVA started in March 2026. Her UK debts totalled nearly £28,000.

After living and working in the UK for around 8 years, an oportunity came up for her to take a position in Canada. She moved with her family in August 2025.

Marne had planned to maintain her debt payments in the UK. However, after a few months, she realised that she had underestimated the local cost of living. She had used up the small amount of savings she had and was struggling to pay her UK debt payments and monthly living expenses.

Marne contacted us. We were are able to advise her on the best course of action and then assist her to start her IVA communicating both via Whatsapp and e-mail.

Marne’s IVA means her monthly UK debt payments have reduced from nearly £900/mth to an affordable £200/mth. She can now focus on her new career in Canada rather than worrying about how to pay her UK debt.

Will an IVA affect your credit rating outside the UK?

When you do an IVA, your credit rating in your local country is not affected.  

The Arrangement is recorded on your UK credit file. As a result, your UK credit rating becomes poor. However, it is not reported by the credit reference agencies in the country where you are now living.

There is (currently) no international credit check system.

Your IVA in the UK is NOT highlighted by the local credit reference agencies because they simply don’t know about it. This means that local banks and other lenders will still lend to you.

You are likely to be able to take out credit – such as a credit card or car finance – where you are living without issue. 

But if you are considering taking out credit outside of the UK during your IVA, think carefully. The repayments could make your IVA less affordable and put the whole Arrangement at risk.