CCJ or an IVA: Which Is Right for Me?

Should you choose a CCJ or an IVA? An Individual Voluntary Arrangement (IVA) and a  County Court Judgment (CCJ) are not the same things. When you go on an IVA, this cancels a CCJ, as the debt will be included in your IVA. This article explains what to do if you have an IVA and CCJ and what happens to CCJs if you have an IVA.

I have an IVA and a CCJ, what should I do?

If you speak to the Insolvency Practitioner (IP) who is supervising your IVA they will be able to advise you on how best to proceed. It could be that this debt was included in your IVA, or should have been included and the CCJ may be an error on the part of the creditor. There may be a case where the budget now needs to be calculated to enable a monthly payment to go to this debt, which could mean a lower payment to your IVA. It could be that you will need to budget for this from your household budget to ensure payments to the IVA can be maintained without any variation. As there are quite a few possibilities it will need you to speak to the IP for guidance.

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Can I do an IVA with a CCJ?

Once you are accepted onto an IVA, any creditors with a CCJ against you will not be able to take further action against you during the term of an IVA. Therefore you will not need to make any payments towards the CCJ, as these will be paid with your IVA.

On the other hand, if a creditor tries to apply a CCJ against you while you are on an IVA, this is against the terms. No creditor can take any further legal action against while you are on an IVA.

Will a CCJ be removed, if I start an IVA?

When a CCJ was placed against one of your debts a ‘mark’ was placed on your credit rating to reflect this fact. When you enter into a standard IVA a ‘mark’ will also be placed against your credit rating. This ‘mark’ will drop off your credit rating 6 years after the date you entered into the IVA.

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Can CCJs be included in an IVA?

A CCJ debt can be included into your IVA. When you apply for an IVA, all your creditors will be treated equally. This means no creditor can get priority over another. This is the same for a CCJ. Therefore when you apply for an IVA you will not need to worry about paying the CCJ.

You may also want to read our article on the differences between a CCJ and bankruptcy.

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