IVAs and CCJs

An IVA is a legally binding agreement with your creditors to repay part of your debt and have the rest written off.

There are fees for an IVA and it will stay on your credit file for six years from the date it’s agreed.

A CCJ is a court order that might be registered against you if you don’t repay money you owe. You may be ordered to make regular monthly payments towards your debt or you may have to pay the full amount immediately.

Like an IVA, a CCJ will also stay on your credit file for six years.

Yes – most of the time a CCJ can be included in your IVA. This means you’ll stop making your CCJ payments, as the money you pay into your IVA will be divided fairly among all the creditors included in your IVA.

After an IVA is agreed by your creditors, they’re not allowed to contact you asking for payment or take any further action against you to recover your debts. This includes the creditor that registered the CCJ against you. 

An IVA may also stop CCJs that creditors are in the process of applying for.

When you get an IVA, it’ll be listed on your credit file separately from your CCJ. It won’t replace the CCJ. Any missed payments or defaults that led to the CCJ will also stay on your file.  

The fact you’ve had a CCJ in the past won’t stop you getting an IVA.

Just be aware, if the CCJ was registered against you within the last six years, it will still be noted on your credit file. If you then get an IVA, this will be listed as a separate entry on your credit report and could damage your credit score further.

Having an IVA will prevent creditors included in the arrangement from taking further action against you to recover the money you owe them. This means an IVA offers protection against future CCJs.