No. You cannot hide money from an IVA. And you shouldn’t try.
Hiding money, assets, or income from your Insolvency Practitioner is a breach of your legally binding agreement. If you’re caught, your IVA fails, you owe the original debt again plus interest, and you could face bankruptcy or even fraud charges.
Here’s what counts as hiding, how your IP investigates, and what happens if you’re caught.
What Counts as “Hiding Money”?#
Hiding money doesn’t just mean having a secret bank account. It includes any deliberate attempt to conceal financial resources from your IP.
Undeclared Income#
This includes:
- Cash-in-hand work: Side jobs, gig work, or freelancing where you’re paid in cash and don’t declare it
- Bonuses and overtime: If your income increases significantly and you don’t report it during your annual review
- Rental income: Renting out a room or property without telling your IP
- Online earnings: Selling items on eBay, Etsy, or other platforms without declaring the income
Even small amounts count. If you’re earning money that your IP doesn’t know about, you’re breaching the agreement.
Hidden Bank Accounts#
Opening a bank account your IP doesn’t know about is a red flag. Your IP has the right to know about all your accounts, including:
- Current accounts
- Savings accounts
- Joint accounts (even if the other person isn’t in an IVA)
- Business accounts
- Accounts held abroad
If you open a new account during your IVA, you must tell your IP.
Undisclosed Assets#
This includes:
- Cryptocurrency: Bitcoin, Ethereum, or other digital assets. These count as assets and must be declared.
- Valuables: Jewellery, art, collectibles, or antiques worth significant money
- Vehicles: A second car, motorbike, or caravan that your IP doesn’t know about
- Investments: Stocks, shares, or ISAs
If it has value and your IP doesn’t know about it, you’re hiding it.
Unreported Windfalls#
If you receive a lump sum—inheritance, PPI refund, lottery win, tax rebate, redundancy payment—and don’t declare it, this is hiding money.
For more on windfalls, see our guide: What Counts as a Windfall in an IVA?
Moving Money to Family or Friends#
Some people try to “hide” money by transferring it to a partner, parent, or friend with the intention of getting it back after the IVA ends.
This is called an “undervalue transaction” and your IP can challenge it. If they discover it, they can pursue the money and may petition for your bankruptcy.
How Your IP Investigates#
Your IP isn’t just taking your word for it. They have legal powers to investigate your financial affairs.
Annual Bank Statement Reviews#
Every year, you must provide updated bank statements (usually 3-6 months’ worth). Your IP reviews these for:
- Large or unexplained deposits
- Regular cash deposits that don’t match your declared income
- Transfers to family members or friends
- Evidence of undeclared accounts
HMRC Information Requests#
Your IP can request information from HMRC about your tax records, including:
- Self-assessment returns
- PAYE records
- Declared income from side jobs or self-employment
If HMRC’s records show income you haven’t declared, your IP will ask questions.
Credit Reference Agency Checks#
Your IP can check with credit reference agencies (Experian, Equifax, TransUnion) to see:
- If you’ve opened new credit accounts
- If there’s evidence of undeclared income (credit applications often require income declarations)
- If you have accounts your IP doesn’t know about
Creditor Information#
Your IP can contact your creditors to verify information. If a creditor has records that don’t match what you’ve declared, your IP will investigate.
Direct Questions#
During annual reviews, your IP will ask you direct questions about:
- Changes to your income
- New assets or windfalls
- Any new bank accounts
- Significant purchases
If you lie in response to these questions, it’s a deliberate breach.
What Happens If You’re Caught Hiding Money?#
The consequences are severe.
Your IVA Fails#
If your IP discovers you’ve hidden money, assets, or income, they’ll report this as a breach. Your IVA will fail.
When an IVA fails:
- You owe the original debt again, in full
- Interest and charges restart from the date you first entered the IVA (not from the date it fails)
- All the money you’ve paid into the IVA goes to creditors, but it’s subtracted from the total, not written off
You’re back where you started, except you’ve lost 2-3 years of payments.
Creditors Can Resume Legal Action#
Once the IVA fails, creditors are free to pursue you again. This can include:
- County Court Judgments (CCJs)
- Bailiffs
- Charging orders on your property
- Wage arrestment (in Scotland)
Your IP May Petition for Bankruptcy#
If you’ve been dishonest or non-cooperative, your IP may recommend bankruptcy proceedings. Creditors can then petition for your bankruptcy.
Bankruptcy has more serious consequences than an IVA:
- Trustees can force the sale of your home
- You may lose your job (if you work in certain professions)
- The bankruptcy stays on your credit file for six years
- You’re publicly listed on the Insolvency Register
Potential Fraud Charges#
In serious cases—particularly if you’ve deliberately hidden large sums or created false documents—you could face criminal charges for fraud.
This can result in:
- A criminal record
- Fines
- Prison time (in extreme cases)
It’s not worth the risk.
Common Scenarios People Ask About#
“Can I keep cash gifts from family without declaring them?”#
No. If a family member gives you money (typically over £500), you must declare it to your IP. It may be treated as a windfall and used to pay down your IVA.
“What if I do overtime or take a second job?”#
You must declare any increase in income during your annual review. If your income goes up, typically 50% of the increase goes to the IVA. You keep the other 50%.
This isn’t “all or nothing”. The system is designed to encourage you to improve your income. You won’t be penalised by losing everything—you’ll share the increase with creditors.
“Can I sell things online (eBay, Facebook Marketplace) without declaring it?”#
If it’s occasional decluttering—selling a few old items—this is usually fine. But if you’re running a regular selling operation and making significant money, you must declare it as income.
Use common sense. Selling your old sofa for £100 is different from selling £500/month worth of stuff.
“My partner earns good money. Do I have to declare that?”#
No. Your partner’s income is not included in your IVA. However, household costs (rent, utilities, food) are shared, so your IP will assess your essential living costs based on the household as a whole.
If your partner suddenly starts paying all the bills so you can hide money in your own account, your IP may question this.
The 50% Rule: You’re Not Losing Everything#
One reason people try to hide money is they think any increase in income will go entirely to creditors. That’s not how it works.
If your income increases:
- Your IP recalculates your affordability
- Typically, 50% of the increase goes to your IVA payment
- You keep the other 50%
Example:
- Your income increases by £200/month
- Your IVA payment increases by £100/month
- You keep £100/month
This system encourages you to improve your financial position. You’re not penalised for getting a promotion or taking a second job.
If You’re Struggling, Talk to Your IP#
If you’re hiding money because you’re genuinely struggling to afford essentials, there’s a better solution: talk to your IP.
Under the 2025 IVA Protocol, supervisors can reduce your payment by up to 20% without needing a variation meeting if you’re genuinely in hardship.
They can also arrange payment holidays if you face a temporary crisis (redundancy, illness, unexpected expenses).
Honest communication is always better than hiding. Your IP’s job is to balance creditor returns with your ability to pay. They’re not there to make your life impossible.
Frequently Asked Questions#
Can my IP see my partner’s bank account?#
No, unless you have a joint account. Your partner’s finances are separate. However, if you’re living together, your IP will assess shared household costs.
What if I have cryptocurrency that I bought before my IVA?#
You must declare it. Cryptocurrency is an asset. If you don’t declare it and your IP discovers it later (through bank statements showing purchases or exchanges), they’ll view this as hiding assets.
Can I open a new bank account during my IVA?#
Yes, but you must tell your IP. Many people open basic bank accounts with different banks if their existing bank closes their account due to the IVA. Just inform your IP of the new account details.
What happens if I genuinely forgot to declare something?#
If it’s a genuine mistake and you correct it as soon as you realise, your IP will likely accept this. The key is honesty and cooperation. If you discover an error, contact your IP immediately and correct it. Don’t wait for them to find it.
Will my IP check my social media for evidence of hidden money?#
They can. If you’re posting about expensive holidays, new cars, or lavish purchases while claiming you can’t afford higher IVA payments, your IP may investigate. Be consistent. If your social media shows a lifestyle that doesn’t match your declared income, expect questions.
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?
If you’re ready to start the process, visit our Apply for an IVA page.