Buy Now Pay Later (Klarna, Clearpay) and Catalogue Debt in an IVA

Can Buy Now Pay Later and Catalogue Debt Go Into an IVA?

Yes. Buy now pay later and catalogue debts are unsecured, so they can usually be included in an IVA like a credit card.

Last updated: November 2026

Check if you qualify →Free, no-obligation checkWon’t affect your credit score

May not be suitable in all circumstances. Fees apply, read more. Your credit rating may be affected, read more.

Things to know about IVAs

An IVA is a formal insolvency procedure. It must be approved by your creditors, stays on your credit file for six years, fees are taken from your payments, and debts are only written off if you complete it. It isn’t right for everyone.

Read the key risks

Creditors must approve it. An IVA only goes ahead if creditors holding at least 75% of the debt that is voted agree. Your proposal can be rejected.
Credit file and public register. An IVA stays on your credit file for six years from the start date and is listed on the public Individual Insolvency Register while it runs. Getting credit will be harder.
Spending restrictions and annual reviews. You live on an agreed budget for the length of the IVA (usually 5–6 years). Your income and spending are reviewed each year, and your payment can go up.
Fees. Fees are taken from your monthly payments, so less of what you pay reaches your creditors. How IVA fees work.
Your home. Under the current IVA Protocol, your home isn’t included in the IVA and you won’t be asked to remortgage. If your share of the equity is £10,000 or more, the IVA usually lasts six years instead of five.
If it fails. If you can’t keep up payments the IVA may fail, you would owe the remaining debt again, and the supervisor may petition for your bankruptcy.
Write-off only on completion. Remaining qualifying unsecured debts are only written off if the IVA is completed successfully. Secured debts, court fines, child maintenance, student loans and some other debts can’t be included.
Other options may suit you better. A debt management plan, DRO or bankruptcy may be more suitable. IVAs are available in England, Wales and Northern Ireland only; different solutions apply in Scotland.

Buy now pay later (BNPL) services such as Klarna, Clearpay and PayPal Pay in 3, along with catalogue and store accounts, are easy to build up. They’re unsecured credit, which means they can usually be part of an IVA.

The short answer

BNPL and catalogue debts are unsecured and can usually be included.
Your accounts will normally be closed once the provider is told about your IVA.
You can’t keep using BNPL during an IVA without your supervisor’s agreement.
Missed BNPL payments may show on your credit file.
Include every BNPL plan, even small ones.

What happens to my BNPL accounts?

Once your IVA is approved, the BNPL or catalogue company becomes a creditor and can’t chase you separately. It will usually close your account. Interest and late fees on the included balance are frozen.

Can I use Klarna or Clearpay during an IVA?

Using new credit, including BNPL, during an IVA usually needs your supervisor’s agreement. Taking on new borrowing without permission can breach your IVA terms. See getting credit during an IVA.

Why list every small plan?

BNPL balances are often small and spread across several apps, so they’re easy to forget. Any creditor not included isn’t bound by your IVA and can still chase you. Check each app and your bank statements before your proposal is prepared.

Common questions

Can Klarna debt be included in an IVA?

Yes. Klarna and similar BNPL debts are unsecured and can usually be included.

Do BNPL debts show on my credit file?

Many BNPL providers now report to credit reference agencies, so missed payments can appear on your file.

Can I keep one catalogue account open in an IVA?

Usually no. Creditors expect all unsecured credit to be included, and new borrowing needs your supervisor’s agreement.

How IVA Advice Online can help

Every situation is different, and an IVA isn’t right for everyone. We can look at your income, spending and debts with you and set out the debt solutions you could qualify for, including options other than an IVA. To talk it through, get in touch.