Check what an IVA is

Summary

If most of your debts are for things like income tax, national insurance arrears or overpaid tax credits, an IVA might not be the right option for you. In this situation HM Revenue & Customs (HMRC) won’t usually agree to the IVA. If HMRC debts are only a small part of what you owe, you should still be able to include them in an IVA. You can't usually include secured loans, mortgages or rent in an IVA. Secured loans are debts which are secured against your home. This means if you can’t pay the debt, they can take your home. You can only include a secured loan or mortgage in an IVA your lender agrees - they don’t usually agree. If you owe rent, an IVA will not stop your landlord taking action to evict you. It’s best to pay mortgage or rent arrears separately to your IVA - this will stop you losing your home. * maintenance arrears that have been ordered by a court If you have debts that can’t be included in the IVA, you'll have to deal with those separately so you need to make sure you have enough money to pay these debts before paying money into an IVA. You might have some ‘joint debts’ which are owed by you and another person, such as a partner. An IVA can only cover one person, so.

Key information

• maintenance arrears that have been ordered by a court
• take action to make you pay
• add interest and charges to your debt
• If most of your debts are for things like income tax, national insurance arrears or overpaid tax credits, an IVA might not be the right option for you. In this situation HM Revenue & Customs (HMRC) won’t usually agree to the IVA. If HMRC debts are only a small part of what you owe, you should still be able to include them in an IVA.
• You can't usually include secured loans, mortgages or rent in an IVA.
• Secured loans are debts which are secured against your home. This means if you can’t pay the debt, they can take your home.
• You can only include a secured loan or mortgage in an IVA your lender agrees - they don’t usually agree.
• If you owe rent, an IVA will not stop your landlord taking action to evict you.
• It’s best to pay mortgage or rent arrears separately to your IVA - this will stop you losing your home.
• If you have debts that can’t be included in the IVA, you'll have to deal with those separately so you need to make sure you have enough money to pay these debts before paying money into an IVA.
• You might have some ‘joint debts’ which are owed by you and another person, such as a partner.
• An IVA can only cover one person, so the other person will still be responsible for the whole of the debt. It might not be a good idea to include joint debts in the IVA.

Practical guidance

• Source: Check what an IVA is

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