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Debt Matters April 2025 round up

The monthly round-up of news, guidance, legislation, and case law from Shelter's Specialist Debt Advice Service.

News and legal updates

This month's legal round up includes new IVA Protocol guidance, civil enforcement and utility debt reports published respectively.

New protocol for Individual Voluntary Arrangements published

As of 1 April 2025, the Insolvency Service has released the IVA Protocol 2025 along with all annexes. The 2025 Protocol introduces important changes and clarification including:

  • property equity of less than £10,000 will be disregarded (currently £5,000)

  • where equity is more than £10,000, the IVA term will extend from 60 months to 72 months

  • in effect, the family home will no longer form part of an IVA

  • a ‘key facts’ document to be sent before an IVA proposal is agreed

The IVA supervisor will also have discretion to reduce monthly payments of up to 20% without creditors’ approval (currently 15%).

There is also clearer guidance for when an IVA might not be suitable, such as where the total debts are under £7,000 or if the individual qualifies for a DRO.

Until 30 June, either the 2021 or 2025 protocol can be used. During this time, clients might prefer to use 2025 protocol due to the changes in terms. From 1 July, only the 2025 protocol can be used.

IVA Protocol 2025

IVA Protocol 2021

Final report on modernising civil enforcement processes

The Civil Justice Council (CJC) has published its final report on how to make enforcement of judgments more efficient whilst retaining protections for defendants. The report makes recommendations to modernise civil enforcement processes including:

  • the consolidation of County Court and High Court enforcement through a single court

  • a single unified ‘digital court’ for enforcement of judgments and where all debts are recorded

  • court communications to be amended by HMCTS to use clear and un-intimidating language

  • measures to provide further information about the defendant at an earlier stage, to prevent delays in judgment enforcement

CJC Enforcement Final report

Utilities debt report published

The Money and Mental Policy Institute (MMPHI) has published its latest report on the psychological harm of utilities debt collection and disconnection. The report finds that 7 million people are in some form of water, energy, or telecommunications debt and 52% of those in some form of utilities arrears have a mental health problem.

The recommendations include for:

  • utility firms to take action to make it easier for vulnerable people to disclose their needs

  • utility regulators to work with the government to introduce additional forbearance measures, and to improve utility providers guidance

  • the government to grant amend enforcement agent legislation to allow for repayment plans at High Court enforcement compliance stage

MMHPI Connection Lost report

Case law

Bluestone Mortgages Ltd v Stoute update

Mortgage capital is not a qualifying debt for a breathing space and court permission is required to enforce a ‘mixed judgment’.

Bluestone Mortgages v Stoute [2025] EWHC 755

Find debt case law summaries by topic on Shelter Legal.

Spotlight

A practical guide to council tax complaints

Most complaints about council tax involve the way a local authority has reached a decision, or its failure to provide a service.

Our new Shelter Legal guide for advisers explains how to make an effective complaint to a local authority or Local Government Ombudsman following a dispute about council tax.

Dealing with a tricky debt case for a client? 

Speak to Shelter's debt experts about your case. Call our helpline on 0330 058 0404 or start a webchat with one of our advisers on this page.

Our helpline and webchat service is open Monday-Friday, 9am-5pm.