i England, Wales, and Northern Ireland. We do not charge you for advice, but you make payments to your insolvency practitioner once your IVA is in progress.

Managing an IVA

Individual voluntary arrangement (IVA) and council tax debt

Your council tax is one of the most important household bills. It is included in your monthly IVA payment.

IVAs are arranged by StepChange Voluntary Arrangements, part of StepChange Debt Charity. In Scotland, a protected trust deed is a similar solution. This has different benefits, risks and fees.

Including council tax in your individual voluntary arrangement ensures that council tax arrears are covered while your IVA is active.

Why is council tax a priority?

Council tax is a priority debt, whether it is your current bill or any arrears.

Priority debts are important because not paying them can have serious consequences.

Local authorities have the power to collect council tax debt by:

Sending in bailiffs
Setting up an attachment of earnings, where money is taken directly from your wages or benefits
Issuing a charging order
Petitioning to make you bankrupt

Clare Lindley and James O'Carroll of StepChange Voluntary Arrangements are licensed to act as insolvency practitioners in the UK by the Insolvency Practitioners Association.

Is an IVA right for you?

Thinking about an IVA?

We can help. Free, online debt advice available now.

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Why is my council tax included in my IVA?

Your current council tax bill is classed as a debt in insolvency solutions, if:

You are the only person named on your household council tax bill, or
You and your partner enter an IVA at the same time

What should I do if council tax is included in my IVA?

The council normally submits their claim for the council tax bill within the first few months of your IVA.

Keep paying your council tax as normal until you receive written confirmation that:

Their claim has been agreed and
Your IVA payments will be adjusted

Future payments to the council stop when this happens.

This ruling only impacts you in the first year of your IVA.

Council tax bills after the approval of your IVA need to be paid as normal.

This is included in your budget and treated as a priority.

Thinking of an IVA? Get free debt advice

Use our free online advice tool to find out if an IVA is right for you.

Already have an IVA? Discuss your situation with your insolvency practitioner first.

StepChange Voluntary Arrangements is a registered trading name of Consumer Credit Counselling Service Voluntary Arrangements Limited, a wholly owned subsidiary of StepChange Debt Charity.