Will an IVA be legally binding with my secured creditors?

An IVA is only binding with your unsecured creditors. Examples of unsecured debts include credit cards, store cards, personal loans and catalogue debts.

Secured creditors mean that they hold security over your assets. For example, a car in a hire purchase agreement is not full yours until you have repaid the debt in full, and the same goes with a mortgage. Secured creditors could take that asset in event of non-payment, so it is essential that you continue to pay and co-operate with all secured creditor whilst going through the IVA process.

An IVA can only include your unsecured creditors. But expenditure, including secured payments, will be taken into account to ensure that these debts are also affordable to you.

Please contact our Individual Voluntary Arrangement team today on 0800 048 1766 to see if your debt can be included in an IVA.