Can a debt be added to an IVA

Can Forgotten Debts be added to an existing IVA?

If you forget to include a debt in your IVA it may be possible to add it later. If the debt is less than 10% of the total already included your Insolvency Practitioner (IP) should simply be able to add it. There are complexities if the debt is larger than 10% of the total amount you owe – in that case a formal variation of the Arrangement will be required. The original creditors must accept the change.

If the variation is rejected the new debt cannot be added. You will then have to make other arrangements to pay it.

Sometime creditors may agree to include a new debt in an IVA if there is a 12 month extension of the payments.

Can you add a brand New Debt to an existing IVA?

It is possible for a brand new debt to appear during your IVA. However the problem you then have is paying both your IVA and the new debt. You must therefore speak to your IP to see if it can be added to the Arrangement.

IPs can often be reluctant to add new debts to an existing IVA. However you may be faced with having to fail the Arrangement because you cannot maintain the payments. In these circumstances they should be prepared to help you.