IVAs and CCJs, Question by Question
What an IVA stops, what it does not, and where timing matters.
Does an IVA stop County Court Judgments?
For the debts it includes, largely yes. Once your IVA is approved, the creditors in it are legally bound, so they cannot start new court action against you or apply for a fresh CCJ for those debts. If a creditor already has a CCJ for a debt that is in the IVA, they cannot enforce it while you keep to the arrangement. The protection applies to included debts, not to anything left outside.
Can a creditor still get a CCJ once my IVA starts?
Not for a debt that is in the IVA. From approval, included creditors are bound by the arrangement and cannot pursue you through the courts for those debts. They could in theory take action over a debt that was not included, which is one more reason to make sure every qualifying debt goes in at the start.
What about a CCJ I already have?
It does not disappear. An IVA does not remove a CCJ that is already on your record, it stays on the Register of Judgments for six years from the date it was made, just as it would otherwise. What the IVA does is stop the creditor enforcing it, so while the judgment remains visible, they cannot act on it for the included debt.
Will an IVA stop bailiffs or enforcement?
For included debts, once approved, yes. Enforcement such as bailiffs (enforcement agents), attachment of earnings or further court steps cannot continue for a debt inside the IVA. If enforcement is already happening, timing matters, so it is important to get advice quickly rather than waiting until the situation has gone further.
Can court action be stopped while my IVA is being set up?
Sometimes, through an interim order. Before your IVA is approved you are not automatically protected, so a creditor could still pursue a CCJ during setup. In urgent cases, your practitioner can apply to the court for an 'interim order', which pauses creditor action while your proposal is considered. A scheme called Breathing Space can also hold action for 60 days while you get advice.
What about a charging order on my home?
That is treated differently. If a creditor has already turned a CCJ into a charging order, secured against your property, that security generally remains, and how it is dealt with depends on your proposal. Charging orders are a specialist area, so if one applies to you, it is essential to get advice before assuming an IVA will clear it.
Does having a CCJ stop me getting an IVA?
No. Having one or more CCJs does not stop you proposing an IVA, in fact, court action is often what prompts people to look at one. The debts behind your CCJs are simply included like your other debts. What matters for an IVA is your overall situation, your income, your debts and what you can afford, not the existence of a judgment.
Should I get advice?
Yes, especially if you are already facing court action. The interaction between CCJs, enforcement, charging orders and an IVA can be complex and time-sensitive. A free, impartial adviser can look at exactly where you stand and tell you honestly whether an IVA, or another route, is the best way to deal with the judgments and the debt behind them, with no obligation.
