CCJ Debt and an IVA

CCJ Debt and an IVA

A CCJ can be included in an IVA. The Arrangement also prevents further legal action being taken against you by included creditors.

Included in this article:

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Can a CCJ be included in an IVA?

If a CCJ has already been issued against you, this debt can be included in an IVA.

Once your IVA is agreed by the creditors, it is legally binding on all of them. This means it overturns any CCJ already issued by any of them.

You no longer have to pay the Judgment because the debt is repaid within the IVA. It is treated in the same way as all the other debts which have been included.

Any payment you are already making towards a CCJ can be cancelled once the Arrangement is in place.

As with other debt repayments, these are not included in your IVA living expenses budget. You will no longer have to make these payments when the Arrangement is agreed.

Struggling to get your head round all of this? We can help. Call us (0800 011 4712) or complete the form at the bottom of this page. The advice is free and confidential.

What happens if you already have an Attachment of Earnings?

Any creditor who has a CCJ against you may also have applied for an Attachment of Earnings. If so, money is now being taken directly from your wages to pay the debt.

Once your IVA is in place, this attachment of earnings will also be cancelled.

The deduction from your wages stops and the debt is treated the same as all the others in the agreement.

Normally it will take about 3 months from the start date of your IVA for any wage attachment to be cancelled.

If you are a homeowner and a Charging Order has been placed against your property, the debt is now secured. This means it can’t be included in an IVA.

Are you protected from getting a CCJ in the future?

Once an IVA is in place, the creditors who are included in the Arrangement can’t take any further legal action to collect their debt. As such, they can no longer apply for a CCJ against you.

If any of the creditors are in the middle of applying for a Judgment, the application must be withdrawn.

This is the case even if the creditor in question did not agree to the IVA. Once it is in place, any creditors who rejected are still legally bound.

However, it is important to remember that an IVA only protects you from the creditors who are included.

If you forget to add a debt, or incur a brand new debt during the Arrangement, this creditor can still take enforcement action against you and get a CCJ.

Got a CCJ and want more advice about starting an IVA? Give us a call (0800 011 4712) or complete the form at the bottom of this page. Its free and confidential.

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12 thoughts on “CCJ Debt and an IVA

    LukeJ says:

    I have an existing IVA that has been in place for just over 2 years. My old company are threatening civil action due to training costs that i dispute. Can i be served a new ccj while in an IVA? the 2 debts are unrelated

      Hi Luke,

      Your IVA only protects you from the creditors listed in the original agreement.

      If you owe money to a creditor (such as your old employer) who was not included in your IVA, they are free to enforce their debt with legal action. As such, they can apply for a CCJ against you.

      I suggest you first speak to your IVA company about the possibility of adding this debt to your IVA. If that is impossible, or the terms required are unacceptable, you might be better off cancelling the Arrangement and either starting a new one (including the new debt) or going bankrupt to write them all off.

      If you would like further advice about your options, please give me a call (0800 011 4712). Its free and confidential.

      In the mean time you can read more about adding a new creditor to your IVA here: Can you add debt to your IVA

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