Comparing Forgotten Debts: Under vs. Over 10%
If you accidentally left a debt out at the start of your IVA, the process to add it depends on how large it is compared to your total debt.
| Debt Size | Status | Action Required | Likely Outcome |
|---|---|---|---|
| Less than 10% of total debt | Unknown Creditor | IP adds it directly | Added smoothly without formal votes. |
| More than 10% of total debt | Material Change | Formal IVA Variation | All creditors must vote to approve it. |
What happens if creditors vote on a larger debt?
- If they accept: The debt is added, but creditors usually require an extension to your IVA payments so they are compensated.
- If they reject: You cannot add the debt. You must make separate arrangements to pay it, typically after your IVA finishes.
Can I Add Brand New Debts?
Taking on new debt during an IVA is restricted, but exceptions are sometimes made for emergencies (such as a mortgage shortfall after repossession or an urgent crisis loan).
- Speak to your IP immediately: Only your IP can determine if a new debt can be factored into your arrangement.
- Risk of IVA failure: If creditors refuse to add the new debt, or if you cannot afford the adjusted payments, your IVA may fail.
NOTE: If your IVA does fail, options are still available. You can transition to an alternative debt solution that keeps your repayments affordable.
The Golden Rule: Include Everything Early
To avoid payment extensions, voting hassle, or the risk of your arrangement failing, declare every single debt in your initial IVA proposal.
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