This page is to offer clarity for people considering an IVA who may be wondering which debts can or cannot be included in an IVA (Individual Voluntary Arrangement), read on for more information on this subject.
Which Debts Can Be Included In An IVA?
Generally most debts can be included in an IVA, but for purposes of reference we provide a list with examples of most debt types that can be included in an IVA scheme.
Arrears from utilities (also from previous properties)
Council tax arrears
Debts to family and friends
Debts that were previously secured against an asset that has been repossessed (vehicles being one example)
HM Revenue and Customs VAT, PAYE, Self assessed tax, National Insurance (HMRC debts)
& Many Other Examples
The above is not an exhaustive list but is designed for illustrative purposes.
Debts That Cannot Be Included In An IVA
These are debts that are
Current utility bills
Rent & property service charges
Mortgages and secured loans
Current service providers
Hire purchase payments
Council Tax (current year if not in arrears)
What If I’m Considering An IVA & I’m Not Sure If My Debt Qualifies?
If you need clarity on whether or not your debts qualify or are in criteria for an IVA, feel free to contact us for more information, you can reach us using one of the many contact forms on the website to be put in touch with an adviser’ who will be able to offer further details on the matter.
To apply for an IVA feel free to use our debt test or get a free debt assessment using the same form, to find out more general information about IVA’s see this page for more information. IVA Page
Generally, unsecured personal debts can be included in an Individual Voluntary Arrangement (IVA).
Debts Owed To Family Members? Can These Be In An IVA?
As mentioned above debts owed to family and friends can be included within an IVA, but insolvency practitioner will have a duty to scrutinize these debts quite closely.
Secured Loans, Mortgage Or Rent Arrears
In general the lenders of such secured debts are unlikely to agree to these being included in an IVA (in theory this would be possible but it is highly unlikely) hence why on this page we place this in the category of debts’ that are not eligible to be put into an IVA.
For more information about the IVA or if you wish to receive a free debt assessment to determine if an IVA could benefit you and if it would be suitable, feel free to reach us at the debt solve homepage.