1. Finance

Which debts can be included in an IVA?

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An IVA which is generally known as Individual Voluntary Arrangement is a formal as well as legally-binding settlement process conducted between you & your lender to repay your debts over a certain time. The Individual Voluntary Arrangement should be set up by a professional insolvency practitioner.

An Individual Voluntary Arrangement can be flexible to match all your requirements however it can be quite costly & there are a number of risk factors to consider. The majority of the debts can easily be paid off via an Individual Voluntary Arrangement but there are certain exceptions too!!!

Debts you can easily incorporate

When you get an Individual Voluntary Arrangement you can incorporate:

  • catalogues
  • store cards
  • overdrafts
  • Council Tax arrears
  • credit card
  • payday loans
  • personal loans
  • tax credit or benefit overpayments
  • gas and electric arrears
  • water arrears
  • national insurance & income tax
  • arrears
  • debts to friends & family
  • other outstanding bills, for instance invoices for building work, solicitor's costs, & vets bills

Secured loans, mortgages, and rent

Secured loans are one kind of debt which is secured against your assets like home. It implies that if you are not able to pay the debt, your creditor can take your property from you. In fact, you can include mortgage, secured loans, or rent arrears in an Individual Voluntary Arrangement. But, your lender will have to provide their approval for it to be incorporated & they're unlikely to perform this.

Amount of debt that can be incorporated

Any amount of debt can be incorporated in an Individual Voluntary Arrangement. There are no maximum or minimum limits set by the law. The charges for an IVA is pretty high therefore if your whole debt is less than 10,000 pounds, then Individual Voluntary Arrangement may not be the most reliable or trustworthy solution for you. Any number of debts can be incorporated however normally an IVA will be suitable if you have more than one creditor.


IVA’s can be flexible. If you determine that an IVA can be a good bet for you, your insolvency practitioner might advise you on whether your debts are suitable for an IVA.

IVA Debts you cannot include

IVA debts you cannot incorporate in an IVA are:


  • maintenance spaces that have been restricted by a court
  • student loans
  • child support spaces
  • Social Fund loans
  • magistrates' court fines
  • TV license arrears


Ending Notes

That's all about “Which debts can be included in an IVA?” In order to know more about what debts can be included in an IVA or anything relevant, simply visit our official website!!!





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