Can an IVA stop a CCJ?

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

Are you trying to learn about an Individual Voluntary Arrangement (IVA) and how it can stop a County Court Judgement (CCJ)? This guide is here to help you.

We know that dealing with debts can be hard, and the IVA process might seem confusing. But don’t worry; you’re not alone. Each month, over 170,000 people visit our site seeking advice on debt problems.

In this guide, we will explain:

How an IVA can stop a CCJ
How you can get an IVA with a CCJ
If a creditor can cancel a CCJ
The problems a CCJ can cause

Our team is made up of people who have had their own struggles with debt. We know how you feel, and we are here to help.

Can an IVA stop a CCJ?

Getting an IVA approved or being in the IVA application process will stop applicable creditors from applying for a CCJ and chasing you for the debt. Creditors are not allowed to chase you for CCJ enforcement outside of the IVA agreement once approved, which means they cannot apply for a CCJ against you once the IVA is in place.

Can you get an IVA with a CCJ?

You can still get an IVA if you have an existing CCJ. A CCJ debt should be included in your IVA proposal to show that you treat all creditors equally. If you were to make separate payments on a CCJ outside the IVA, it would be viewed as giving that creditor preference and could cause your IVA proposal to fail.

When you do move from a CCJ to an IVA, you will make no more CCJ debt repayments. The creditor with the CCJ against you will receive their money via your insolvency practitioner and your single monthly payments.

How a debt solution could help

Some debt solutions can:

Stop nasty calls from creditors
Freeze interest and charges
Reduce your monthly payments

A few debt solutions can even result in writing off some of your debt.

Here’s an example:

Situation

Monthly income	£2,504
Monthly expenses	£2,345
Total debt	£32,049

Monthly debt repayments

Before	£587
After	£158

£429 reduction in monthly payments

If you want to learn what debt solutions are available to you, click the button below to get started.

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Is an IVA better than CCJ?

A CCJ is an escalation of a single unpaid debt, whereas an IVA is a debt solution that puts you on track to repay all your debts with the potential to have some of your debt written off. You should discuss which option is better with a debt adviser. Free debt advice services are available through debt charities. You can find some details below:

Organisation	Website	Phone number
Stepchange	http://www.stepchange.org	0800 138 1111
National Debtline	http://www.nationaldebtline.org	0808 808 4000
Citizens Advice	http://www.citizensadvice.org.uk	England: 0800 144 8848 Wales: 0800 702 2020

In terms of an IVA and CCJ comparison, while an IVA may hurt credit scores during its duration, successfully completing an IVA can provide an opportunity for a fresh financial start. In contrast, a CCJ can have a severe and long-lasting negative effect on credit scores. However, it is important to understand the impact of an IVA on your credit score.

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Can a creditor cancel a CCJ?

Creditors do not cancel CCJs; an IVA agreement will supersede a CCJ. There is a possibility to have your CCJ stopped if you have been issued a CCJ while your IVA application is in motion.

What are the consequences of a CCJ?

You really want to avoid getting a CCJ if you can. The main one of the CCJ implications is that it will have a severe impact on your credit score and make it much more difficult to get any form of credit, whether that’s a credit card or a phone contract. It will stay on your credit file for six years after it has been issued.