Types of debts covered by an IVA

An IVA is a legally-binded agreement between you and your creditor which can be flexible to suit your needs. Almost all types of debts can be covered by an IVA but there are certain small exceptions that the person who opts for IVA needs to be aware of. They are as follows:

Generally an IVAPlan.co.uk is used for the following types of debts:

  • Personal loans
  • Catalogues
  • Home loans
  • Store cards
  • Credit card bills charge cards etc.

The above mentioned are called as non-priority debts.

  • Income Tax debts
  • Electricity and gas debts
  • Council tax arrears
  • The above mentioned are called as priority debts.

How much amount can a debt cover?

An Individual Voluntary Arrangement can include any amount of debt. There are no limits according to the law. A majority of the creditors will agree only if you have a debt more than ten thousand euros.

How many numbers of debts can be included?


Individual Voluntary Arrangement


An individual should usually have more than three debts and most important of all is that he/she should hold debts from two different creditors. IVAs are flexible too. If you still are in a dilemma whether to choose an IVA or not, by all means you can ask an insolvency practitioner to analyse your lifestyle and he will tell if the plan will actually suit you.

The debts that cannot come under an IVA are

  • Student loans
  • Child support arrears
  • Court fines

You can also own a joint debt with some other person to be eligible for IVA. But it will be suitable only if you have joint debts with one person. If you have joint debts with more than a person, then IVA will not be a good idea to opt for.