IVAs and CCJs

If you’re struggling to keep up with county court judgment (CCJ) payments, you may be wondering if an individual voluntary arrangement (IVA) could help you get back on track with your finances.

Find out if you can get an IVA with a CCJ, whether you can get an IVA if you’ve had a CCJ in the past and whether an IVA will protect you from future CCJs.

What is an IVA?

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.

What is a CCJ?

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.

Can I get an IVA if I have a CCJ?

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.

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How will an IVA affect my CCJ?

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.

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Will a CCJ stay on my credit file if I get an IVA?

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.

Can I get an IVA if I’ve had a CCJ before?

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.

Will my IVA protect me from future CCJs?

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.