An IVA includes most types of unsecured debt. This covers credit cards, personal loans, overdrafts, payday loans, catalogues, utility arrears, council tax arrears, and HMRC debts like income tax or VAT.
Secured debts (like mortgages or car finance) can’t be included. Neither can court fines, child maintenance, or student loans. If most of your debt is secured, an IVA won’t help — you’ll need to look at other options.
Unsecured Debts That CAN Be Included#
These are the most common types of debt included in IVAs:
Credit Cards and Store Cards#
All credit card debts can be included, whether they’re from high-street banks, supermarket cards, or store cards like Argos, Next, or John Lewis.
If you have multiple credit cards, you can include all of them in one IVA. Your IP will list each card as a separate creditor in your proposal.
Personal Loans#
Any unsecured personal loan can be included, whether it’s from a bank, building society, or online lender.
This includes:
- Bank loans
- Loans from credit unions
- Peer-to-peer loans (like Zopa or RateSetter)
- Consolidation loans
If the loan is secured against an asset (like your car), it can’t be included. Secured loans sit outside the IVA and must be paid separately.
Overdrafts#
Both arranged and unarranged overdrafts can be included.
Once your IVA starts, your bank will usually freeze or close your account to prevent the overdraft from increasing. You’ll need to open a basic bank account elsewhere (most banks offer these, and they don’t require a credit check).
Payday Loans#
All payday loan debts can be included, even if they’ve been sold to a debt collector like Lowell or Link Financial.
Payday lenders are unsecured creditors, so they’re treated the same as credit card companies in an IVA.
Catalogue Debts#
Catalogue debts from companies like Very, Littlewoods, JD Williams, or Freemans can all be included.
Even if you bought goods on credit through the catalogue, the debt is unsecured and can be included in your IVA.
Council Tax Arrears#
You can include council tax arrears in your IVA, but only the arrears — not the current year’s bill.
For example, if you owe £1,200 from last year and £800 from this year, only the £1,200 arrears can be included. The £800 current bill must be paid separately as a priority debt.
Once your IVA starts, you’ll need to keep up with current council tax payments. If you fall behind again, those new arrears can’t be added to the IVA.
Utility Arrears (Gas, Electric, Water)#
Arrears on gas, electricity, and water bills can be included. But again, only arrears — not current bills.
Once your IVA starts, you must keep up with current utility payments. If you don’t, the suppliers can disconnect your service (except for water, which can’t be disconnected in the UK).
If your utility debt has been sold to a debt collector, it can still be included in the IVA.
HMRC Debts#
Debts owed to HM Revenue & Customs (HMRC) can be included. This covers:
- Income tax arrears (from self-assessment)
- VAT arrears (if you’re self-employed or run a business)
- National Insurance arrears
- Tax credit overpayments
HMRC is often a tougher creditor than banks or credit card companies. They’ll want to see that all your tax returns are filed and up to date before they approve your IVA.
If you owe HMRC money and want to include it in an IVA, make sure all your tax affairs are in order first.
Benefit Overpayments#
If you’ve been overpaid benefits (like Universal Credit, tax credits, or housing benefit) and DWP is asking you to repay it, this debt can be included in your IVA.
DWP overpayments are treated as unsecured debts.
Mobile Phone Debts#
Unpaid mobile phone bills or contract debts can be included.
This applies whether the debt is still with the original provider (like EE, Vodafone, or Three) or if it’s been sold to a debt collector.
Debts Sold to Debt Collectors#
If any of your debts have been sold to debt collection agencies — like Cabot Financial, Arrow Global, Lowell, or PRA Group — they can all be included.
Once a debt is sold, the debt collector becomes the creditor. Your IP will contact them directly and include the debt in your proposal.
Money Owed to Friends or Family#
If you’ve borrowed money from friends or family, this can be included in your IVA — but only if you declare it.
Your IP will treat them as unsecured creditors. They’ll receive a share of your monthly payment, just like any other creditor.
Be aware: if your friends or family lent you a large sum and they’re unhappy about being included in the IVA, this can cause personal issues. Discuss it with them before you proceed.
Other Unsecured Debts#
You can also include:
- Rent arrears (but see “Debts to Be Careful With” below)
- Hire purchase agreements for goods you’ve returned
- Parking fines (civil parking charges, not court-issued fines)
- Gym membership debts
- Vet bills, solicitor bills, or other professional fees
Debts That CANNOT Be Included#
These debts sit outside an IVA and must be paid separately:
Secured Debts#
Any debt secured against an asset can’t be included. This includes:
- Mortgages
- Car finance (if the car is used as security)
- Secured loans or logbook loans
You must continue paying these separately. If you don’t, the lender can repossess the asset.
If you’re struggling with secured debt, an IVA won’t help. You’ll need to negotiate directly with the lender or consider selling the asset.
Court Fines and Criminal Penalties#
Fines imposed by a criminal court (like speeding fines, court costs, or victim surcharges) can’t be included in an IVA.
These are priority debts and must be paid in full.
Child Maintenance Arrears#
If you owe child maintenance through the Child Maintenance Service (CMS) or under a court order, this can’t be included in an IVA.
Child maintenance is a priority debt and must be paid separately.
Student Loans#
Student loan debt (from Student Finance England, Scotland, Wales, or Northern Ireland) can’t be included.
Student loans have their own repayment terms based on your income, and they’re not treated as ordinary debts.
TV Licence Arrears#
In most cases, TV licence arrears can’t be included in an IVA.
TV Licensing usually pursues arrears through the criminal court system, which means they’re treated as fines rather than unsecured debts.
Debts Incurred After the IVA Starts#
Any new debts you take on after your IVA starts can’t be added to the arrangement.
For example, if you get a new credit card or loan during your IVA (which you’re not supposed to do without IP approval), that debt won’t be covered by the IVA.
Debts to Be Careful With#
Rent Arrears#
Technically, rent arrears can be included in an IVA. But it’s risky.
If you include rent arrears, your landlord becomes a creditor. They’ll be notified that you’re in an IVA. This might make them less willing to renew your tenancy when it expires.
It’s usually better to keep rent arrears outside the IVA and arrange a separate payment plan with your landlord.
Joint Debts#
If you have a joint debt (like a joint credit card or joint loan with a partner), only your share can be included in your IVA.
For example:
- You and your partner have a joint credit card with £10,000 debt
- You enter an IVA
- Your half (£5,000) is included in the IVA
- Your partner is still liable for their half (£5,000)
The creditor can still pursue your partner for the full amount. This often causes problems because the creditor will expect your partner to pay the whole debt, even though half of it is now in your IVA.
If you have significant joint debts, consider whether both of you should enter IVAs (as separate arrangements, because there’s no such thing as a “joint IVA”).
How Much Debt Can You Include in an IVA?#
There’s no upper limit. You can include £6,000 or £600,000 — it doesn’t matter.
The typical IVA includes between £6,000 and £30,000 of debt.
Minimum debt for an IVA: Most Insolvency Practitioners won’t accept an IVA unless you have at least £6,000 in total debt. Below that, a Debt Management Plan or Debt Relief Order might be more suitable.
No maximum debt: There’s no cap. If you owe £100,000 or more, an IVA can still work — as long as you can afford the monthly payments and your creditors approve the proposal.
Can You Add Debts After Your IVA Starts?#
Usually no.
When you apply for an IVA, you must declare all your debts. These debts are listed in your proposal and presented to creditors for approval.
Once the IVA is approved, you can’t add new debts unless:
- You forgot to declare a debt (an honest mistake)
- A debt was unknown at the time (e.g., an old debt that only surfaced later)
In these cases, your IP can amend the IVA to include the forgotten debt. But creditors must approve the amendment.
If you deliberately take on new credit during your IVA (without IP approval), that debt can’t be added to the arrangement. You’ll be liable for it separately, and it could breach your IVA terms.
What If Most of Your Debt Is Secured?#
If most or all of your debt is secured (mortgages, car finance, etc.), an IVA won’t help.
IVAs only deal with unsecured debt. Secured creditors aren’t bound by the arrangement, and they can still repossess assets if you don’t keep up payments.
In this case, your options include:
- Negotiate directly with secured creditors: Ask for reduced payments or a payment holiday
- Sell the asset: If you can’t afford the payments, selling might be the only option
- Bankruptcy: If you have no assets worth protecting, bankruptcy might write off unsecured debts faster than an IVA
Speak to a debt adviser to explore your options if you’re mainly dealing with secured debt.
Can You Choose Which Debts to Include?#
No. You must include all eligible unsecured debts in your IVA.
You can’t pick and choose which creditors to include. If you have five credit cards, you can’t include four and keep paying the fifth separately.
Why? Because it’s not fair to creditors. If you selectively include some debts and not others, creditors won’t approve your IVA.
The only exception is if you have a debt you want to keep paying separately (like a car on finance), and that debt is secured. Secured debts sit outside the IVA anyway.
If you’re struggling with debt and want to find out what options are available, use our free IVA calculator to see if you qualify and how much debt you could write off. It takes 2 minutes and won’t affect your credit score.
Frequently Asked Questions#
Can I include parking fines in an IVA?#
Civil parking charges (from private car parks) can be included. But court-issued parking fines (penalty charge notices from councils) can’t — they’re treated as court fines.
What if I forgot to declare a debt when I applied for my IVA?#
Tell your IP immediately. They can amend your IVA to include the forgotten debt, but creditors must approve the amendment.
Can I include debts that are statute-barred?#
Technically yes, but there’s no point. Statute-barred debts are unenforceable anyway, so you don’t need to include them in an IVA.
Can I add new debts to my IVA if my circumstances change?#
No. New debts incurred after the IVA starts can’t be added. If you need to take on new credit (with IP approval), that debt sits outside the IVA.
What if a creditor refuses to accept my IVA?#
Individual creditors can vote against your IVA, but as long as 75% (by debt value) vote in favour, the IVA is approved. All creditors — even the ones who voted no — are then bound by it.
Can I include debts owed to HMRC even if I haven’t filed my tax returns?#
You can include the debt, but HMRC is unlikely to approve your IVA unless all tax returns are filed and up to date. Sort out your tax affairs before applying.
If you’re struggling with debt and want to find out what options are available, use our free IVA calculator to see if you qualify and how much debt you could write off. It takes 2 minutes and won’t affect your credit score.