IVA
Can I borrow money during an IVA?
In an IVA you can't borrow more than £500 without your supervisor's written permission, and lenders can see the IVA on your file. Here's how the rule works, why borrowing now usually backfires, and what to do instead.
- £500 limit
- Permission needed
Written and reviewed by the AfterMy team · Last reviewed October 2026
Quick answerUsually not, and rarely a good idea. While your IVA is active you cannot take on more than £500 of credit without your supervisor's written permission, and a loan almost always sits well above that. Lenders can see the IVA on your file too, so they may decline. The honest answer is that borrowing now works against your arrangement.
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The short version
A loan during an IVA runs into the same rule that governs all borrowing in an arrangement: you cannot obtain more than £500 of credit without the written consent of your IVA supervisor. Almost any loan is more than £500, so you would need permission first, and it is rarely given for general borrowing.
There is a practical barrier on top of the rule. While your IVA is active it shows on your credit file and on the public Individual Insolvency Register, so lenders may decline an application outright. Those who consider people mid-IVA charge very high rates, which is the last thing a budget built around an IVA needs.
Why the £500 rule exists
The limit is part of the standard terms of every protocol IVA, and it is there to protect the arrangement. Your IVA is built around a careful budget, and new borrowing can throw that off, putting your monthly payments and the whole plan at risk.
That is why anything over £500 needs sign-off from your supervisor, who will only agree if it genuinely makes sense and does not endanger the arrangement.
It applies to all borrowing, not just loans from banks. Credit cards, car finance, catalogue credit, and even money from friends and family all count towards the same limit.
What happens if you borrow without permission
Going over £500 without consent is a breach of your IVA. It does not end the arrangement automatically.
Your insolvency practitioner may issue a breach notice and give you a chance to put things right. But if it is not resolved, your creditors could vote to end the IVA, which would undo the protection you have built.
A loan is not worth that risk.
"I want to start rebuilding now"
If this is why you're asking, it is a good instinct pointed in the wrong direction. Taking on a loan during your IVA does not speed up your recovery. While the IVA sits on your file, new borrowing cannot lift your profile much, and the cost and risk outweigh any benefit.
What does help is free. Stay on the electoral roll, keep every bill paid on time, and keep your IVA payments perfect so you reach completion cleanly. That steady record is exactly what lenders look at once the arrangement is behind you.
What changes when your IVA completes
When your IVA finishes you receive a Completion Certificate and the £500 restriction lifts. You no longer need anyone's permission to borrow.
The IVA marker stays on your file until six years from the start date, or completion if that is later, so some mainstream lenders may still be cautious. A fresh record of on-time payments gives every lender more to go on.
AfterMy is built to help you work out your next steps once your IVA completes.
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Questions
Frequently asked questions
Can I get a small loan under £500 during an IVA?
The limit counts the total credit you take on, so check with your supervisor first. Lenders can see the IVA on your file while it's active, and borrowing mid-arrangement is rarely wise.
Will my supervisor approve a loan?
Only rarely, and usually only for something essential. A general loan to tide you over is very unlikely to be approved.
What counts towards the £500 limit?
All credit: loans, credit cards, car finance, catalogue accounts, and borrowing from friends or family.
Is a payday loan an option during an IVA?
No. Payday and high-cost short-term loans are exactly the kind of borrowing to avoid, and any borrowing over £500 needs your supervisor's written consent.
Should I just wait until my IVA ends?
Waiting until completion means no permission needed and no risk to your arrangement.
Come back when your IVA has finished.
While your IVA is running, the rules above apply.