IVA'S & charging orders

Olivia_Jones

Hi
Does anyone know if you are able to add a debt that was unsecured but is now a charging order secured on our house on to an IVA?
Thanks

MIVAA

Hi Olivia,

Unfortunately, once a debt is subject to a Charging Order it effectively switches from being unsecured to secured.

Therefore it is not possible to include the Charging Order debt into an IVA once the Order is in place.

You will have to arrange for it to be paid alongside your mortgage and other secured debts from out of your disposable income, thus reducing what you can offer to your other creditors through the IVA.

It is possible to stop the legal actions a creditor may be taking during the IVA application phase, but only by using an Interim Order, which can only be provided by an I.P.

This is why it is essential for people who are in the process of applying for an IVA to keep their IP informed of any actions that a creditor may be taking against them.
HTH

MIVAA