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Adding a debt to your individual voluntary arrangement

This advice applies to Wales

This page tells you what to do about a debt you didn't realise you had when your IVA was set up.

Debt you didn't know about

If a debt comes to light after the IVA has been set up, you must tell your insolvency practitioner (IP) about it straight away.

The law calls these creditors unknown creditors.

The IVA is legally binding on any creditors that are discovered later on. This means they must stick to it and they can’t take any other action against you to get their debt back. Some of your monthly repayment will go to them.

Your IVA must include terms and conditions for how any unknown creditors will be paid if they are discovered later on. Unknown creditors are entitled to receive some of your monthly payments, even if you don't discover them until after the IVA has finished.

Unknown creditors who are not happy with the arrangement that you've made with the other creditors can apply to the court to challenge the IVA. They have 28 days from the date that they find out about the IVA to challenge it.

If you don’t think you owe the debt, you should tell your IP this and that you want to challenge it.

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