An Individual Voluntary Arrangement (IVA) is a debt solution which involves yourself and your creditors coming to a legally binding agreement to extend your loan term and allow you to make reduced monthly repayments over this new timeframe.

Whilst an IVA can provide you with a flexible option to address your debt and alleviate the financial strain of debt in the short term, they nevertheless come with a number of dangers which could cause a long-term substantiation of your problems.

The following page will outline the best measures you should take in event that you accidently omit an existing debt when you set up your IVA, and desire to have it included in your agreement.

Debt you didn’t know about

If you realise that you have forgotten to include one of your creditor debts into your IVA after it has been officially enacted, then you will need to alert your insolvency practitioner of this immediately.

Creditor’s such as this are legally classified as unknown creditors.

Your IVA will need to have clearly outlined terms and conditions about the manner in which unknown creditors will receive payment if they are added to an IVA. It is important that you remember that unknown creditors will be given some form of payment from your monthly IVA contributions, irrespective of whether they were added to the agreement during or after your IVA has run.

However, the legally binding aspect of an IVA is applicable to unknown creditors in exactly the same way as it is with your original creditors, and they will be unable to pursue court action against you in to recover their money.

Any of your unknown creditors who aren’t satisfied with the IVA you have managed to come to an agreement over with the rest of your creditors can make a formal and legal challenge to the court. They will how to make this challenge within 28 days of being added to an IVA; otherwise they will be unable to dispute its terms and conditions.