After starting an IVA you may need to add an additional debt. Perhaps one was forgotten or you have incurred new debt. This may be possible but not always.
Included in this article:
- Can forgotten debts be added to an IVA?
- Add a brand new debt to an existing IVA
- How to find out who you owe money to
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Can Forgotten Debts be added to an existing IVA?
If you forget to include a debt in your IVA it may be possible to add it later. If the debt is less than 10% of the total already included your Insolvency Practitioner (IP) should simply be able to add it.
However if the forgotten debt is larger than 10% a formal variation of the Arrangement will be required. All the creditors have to vote and the debt can only be added if 75% of the value of the voting creditors agree.
If a new debt is successfully added to your existing IVA you must expect that the original length of the Arrangement will be extended. Normally you will have to pay for an extra 12 months.
Struggling to get your head round all of this? We can help. Call us (0800 077 6180) or complete the form below. The advice is free and confidential.
Can you add a brand New Debt to an existing IVA?
It is possible for a brand new debt to appear during your IVA. One example of this could be a mortgage shortfall after a home repossession. Another is if you had a financial emergency and took a payday loan.
However the problem you then have is paying both your IVA and the new debt will be extremely difficult. You must therefore speak to your IP to see if it can be added to the Arrangement.
IVA Companies can often be reluctant to add new debts to an existing IVA. Even though you may be faced with having to fail the Arrangement because you cannot maintain the payments they may still be unprepared to help you.
If a new debt cannot be added to your IVA you need to consider your options. It might be sensible to to allow let your current Arrangement fail and start a new one or use a different solution.
Struggling with your IVA. We can help? Give us a call (0800 077 6180) or complete the form below. The advice is free and confidential.
How to find out who you owe money to
Given that a new debt cannot easily be added to an existing IVA it is important to remember and list everyone you owe money to before you start your application.
However this can be difficult. If your accounts have been passed between debt collectors or sold to a debt purchaser you may no longer know who is owed what.
One place that you can find a list of the debts you owe is your credit file. You should get a copy of your file and go through it. This should give you a good idea of who you owe money to and how much.
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hi can you let me know if a debt incurred after the start of an IVA can be included if I have not told the new creditor of my iva
Hi Mandy
In theory it is possible to add a new debt to your existing IVA. The new creditor would not normally be aware of the IVA unless they had undertaken a credit check against you before lending you the money. They may or may not have done this but it should not make any difference either way.
In reality, how easy it will be to add the debt depends on both the attitude of your IVA company and how large the new debt is. Some IVA companies are more helpful than others.
If the new debt is less than 10% of the amount currently in your Arrangement, the company should be able to add it without having to get any agreement from the existing creditors. If it is greater a formal variation meeting will have to be held to allow the creditors to decide.
Ultimately you will need to speak to your IVA company and see what they say. If you come across any difficulties, please do feel free to give me a call (0800 077 6180). I would be happy to give you further advice on what to do.
I have an issue with my council tax as can’t afford to pay the payment plan they are expecting. I also have an overpayment for tax credits and can’t afford to pay both. The council tax is 1505 and tax credits is 189. So wondering of adding these to my present IVA. I realise my payments for my iva will have to go up and be extend.
Hi Laura
You need to speak to your IVA company. Given the amount of these extra debts is relatively low, they should be able to help you include them.
If they say they won’t help for any reason, by all means give me a call on 0800 077 6180. I would be happy to have a chat with you and discuss your options. The advice is free and confidential.
Can I add a new debt to my Iva dashboard
Hi Maureen,
If you have incurred a new debt during your IVA or have discovered one that you initially forgot about, it is often possible to add this to your current Arrangement. However, you can’t just add it yourself.
You will need to speak to someone at your IVA company and explain that you have an additional debt which you want to add.
If the amount of the new or forgotten debt is less than 10% of the total debts already in your IVA, they should be able to simply add it. If it is greater, then a formal variation of the IVA will have to be agreed by the creditors.
Either way, if the additional debt is added, you will normally have to accept that your IVA will be extended. This will usually mean 12 additional months of payments but could be more in some cases.