What debts can be included in an IVA?
Quick Answer: Most unsecured debts can be included, but secured debts, student loans, and court fines cannot.
An IVA can include a wide range of unsecured debts. These are debts that are not secured against an asset like your home or car.
Debts that CAN typically be included: credit card debts, personal loans (unsecured), store cards and retail credit, overdrafts, catalogue debts, payday loans, HMRC debts (tax credits, self-assessment), utility bill arrears, and mobile phone contracts.
Debts that CANNOT be included: mortgage arrears (secured debt), secured loans, student loans (Student Loans Company), court fines and penalties, child maintenance and child support arrears, and social fund loans.
One important feature of an IVA is that once it's approved by creditors representing 75% of your debt by value, it becomes binding on ALL unsecured creditors - including those who voted against it or didn't vote at all.
Joint debts can be complex. If you have a joint debt, the IVA only covers your portion. The other person remains liable for the full amount unless they also enter an IVA or other arrangement.
* This information is for general guidance only and does not constitute financial advice.