An Individual Voluntary Arrangement (IVA) is a legally binding debt solution, and once you’ve agreed to the terms and conditions it can be difficult to add new debts to your IVA.
Your Insolvency Practitioner (IP) should simply be able to add the new debt to your IVA without any issues.
What debts Cannot be included in an IVA?
What debts does an IVA include?
- Personal loans.
- Credit cards.
- Gas and electric arrears.
- Council tax arrears.
- Water arrears.
- Payday loans.
How much debt can be written off with an IVA?
Some organisations claim that IVAs can write off up to 90% of your debt. Whilst this can happen in extremely rare cases, in reality, an IVA will write off between 50% and 60% of an average debt of just under £60,000.
Can I get student finance if I have an IVA?
Student Loans and your IVA
If you start an IVA this will result in you getting a poor credit rating. Student Loan Company loans are available to eligible students even during an IVA. However you will not be able to take new standard credit facilities during the arrangement.
Can housing benefit overpayment be included in an IVA?
Housing Benefit overpayments can be included in an IVA. The Council can also recover the debt by making deductions from ongoing Housing Benefit payments but outstanding amounts must be written off after your IVA is completed.