Money Advice, Debt Advice & Debt Help
Which Debts are included in an IVA?

Which Debts are included in an IVA?

Which Debts are included in an IVA?

If you are thinking about starting an IVA you need to be clear which debts are included. Generally speaking it is just the ones that are unsecured.

Included in this article:

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Which debts are included in an IVA?

All types of unsecured debt can be included in an Individual Voluntary Arrangement (IVA) What are unsecured debts? Can tax and business debts be included? To find out more please visit:

The Debts that are included in an IVA

Only unsecured debts in your name can be added to your IVA. These include (but are not limited to) the following:

Credit Cards Personal Loans Doorstep loans Pay Day loans Guarantor loans
Catalogues Store Cards Bank overdrafts HMRC Debts CCJs

A CCJ (County Court Judgment) can also be added into an IVA. It will be overturned once the Arrangement is accepted.

Is it possible to add HMRC debt in an IVA?

Any money you owe to HMRC such as unpaid tax or VAT can be included in an IVA. This debt is unsecured and is not treated preferentially over any of your other creditors.

Generally speaking HMRC will accept your proposal as long as it is reasonable. You will need to make sure your personal tax returns are up to date before your offer is submitted.

Overpaid tax credits can also be included in the Arrangement. Any ongoing benefits payments you are receiving should not be affected.

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.

Which Debts can’t be included in an IVA?

There are various debts which cannot be included in an IVA. The main category is secured debt. These are things like mortgages, secured loans, Charging Orders and items on Hire Purchase.

If you do not keep up the payments towards these the property they are secured against would be at risk of repossession. A provision must be made in your living expenses budget so you can continue to maintain them.

If you have mortgage arrears an amount can be included in your living expenditure budget to start repaying these.

Other debts that cannot be included in an IVA are Child Support Agency (CSA) arrears, Student Loan Company loans or Court Fines. A provision to pay these in full must be made within your expenditure budget.

Which debts cannot be included in an IVA?

Not all debts can be included in an Individual Voluntary Arrangement (IVA) Is secured debt included in an IVA? Are there any unsecured debts which cannot be included? To find out more please visit:

Can you choose to keep a debt out of your IVA?

Generally speaking you must include all of your unsecured debts. If you leave any out it could put the Arrangement in jeopardy. Trying to pay them could mean you are unable to afford your agreed IVA payments.

Having said that there are some specific situations where you might be allowed to leave a debt out. An example of this is if you own money to your employer and your job would be at risk if the payments were not maintained.

You can also leave out money owed to friends or family. However you would need to agree to suspend any further repayment to them until after your IVA is completed.

It can be helpful to include friends or family debt in your IVA. Their support might help with getting the Arrangement accepted. However they will normally be excluded from any dividends paid to the other creditors.

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    12 thoughts on “Which Debts are included in an IVA?

    1. Jake says:

      Im a guarantor and am thinking about iva for some other debts, but as this guarantor loan is for a family member i was thinking of leaving the guarantor loan out. I will be more than able to make payments should my family member be unable to make a payment. Is this a bad idea?

      1. James Falla says:

        Hi Jake

        If you are a guarantor for someone else my advise would be that you should tell the IVA company you are working with about this during the application process. They can then ensure that they make a provision for this debt in the Arrangement. That way if the family member stops paying you will be protected.

        If you do not do this and leave the loan out and you do become liable for the debt it could be a problem. It might put your while IVA at risk if you are unable to afford the payments from savings you can make from your agreed living expenses budget. Do not count on being able to do this. Making payments towards other debts as well as your agreed IVA payment is never easy as the living expenses budget is normally pretty tight.

        Remember the family member you have guaranteed the loan for will be unaffected by your IVA as long as they keep their agreed loan payments up.

    2. Sarah M says:


      I am just wondering can an Iva include council tax arrears and a guarantor loan?

      1. James Falla says:

        Hi Sarah

        The answer is yes. You can included both these types of debts in an IVA. The only issue with a guarantor loan is that the person who guaranteed the loan becomes liable for the payments.

    3. Anthony says:

      Hello. Can bright house be included on iva?

      1. James Falla says:

        Hi Anthony

        Brighthouse debt is not unsecured credit. It is hire purchase. In other words you do not own the items until the debt is paid in full. As such if you do not pay, Brighthouse have the right to come and take the goods away.

        That said it is possible that if you stop paying they would not take back the goods because it is not worth their while to do so. The goods actually aren’t worth anything 2nd hand so getting them back is normally more hassle than it is worth. And bad publicity for Brighthouse.

        Best advice would be to avoid putting them in your IVA if you can help it. If you can maintain the Brighthouse payments and still make a reasonable payment into your IVA that would be the best option. Once the payments are finished you can then increase your IVA payments at that time.

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