Key points at a glance
- Council tax arrears can usually be included in an IVA as an unsecured debt, alongside things like credit cards, loans and overdrafts.
- Once an IVA is approved, the council becomes bound by it like your other creditors — so they should stop chasing the arrears separately and any enforcement action on those arrears should pause.
- An IVA covers the arrears (what you already owe). Your ongoing, current-year council tax still needs to be paid as normal.
- How much of the arrears is repaid depends on your circumstances and what your creditors agree to — anything left unpaid on qualifying debts at the end of the arrangement is written off.
Can council tax be included in an IVA?
In most cases, yes. Council tax arrears are treated as an unsecured debt, which means they can normally be included in an Individual Voluntary Arrangement (IVA) along with your other unsecured debts such as credit cards, personal loans, catalogue debt and overdrafts.
When you include council tax arrears in an IVA, that balance becomes part of one affordable monthly payment, rather than something you have to deal with separately and under pressure. For many people, that's the difference between a manageable plan and a constant fear of the next letter through the door.
An IVA can only include the council tax you already owe at the point your arrangement is set up — the arrears. It can't include future council tax that hasn't fallen due yet. We explain how the current year is handled further down.
How an IVA handles council tax arrears
An IVA is a formal, legally binding agreement between you and the people you owe money to, set up and supervised by a licensed Insolvency Practitioner. Here's how council tax arrears fit into that:
- The arrears are listed as a debt. When your IVA proposal is drawn up, your council tax arrears are listed alongside your other creditors.
- The council gets a say. Like your other creditors, the council can vote on whether to accept the arrangement. IVAs are approved when creditors holding the required majority of the debt agree.
- Payments are pooled. Instead of paying the council directly for the arrears, you make one monthly payment into the IVA, which is shared between all included creditors.
- Interest and further charges on included debts are frozen while the IVA runs, so the arrears stop growing.
This is one of the reasons people look at an IVA when council tax debt sits on top of other borrowing — it brings everything into a single, structured plan instead of several creditors chasing you at once.
Does an IVA stop council tax bailiffs?
If a council passes a council tax debt to enforcement agents (still widely called bailiffs), it's understandably frightening. The good news is that once an IVA is approved, your creditors — including the council — are bound by it, and they should stop pursuing the included arrears through enforcement.
Timing matters, though. Protection comes once the arrangement is in place, so if bailiffs are already involved or a visit is imminent, it's important to get advice quickly rather than waiting. There can also be an interim stage in some cases that offers earlier breathing space — a licensed Insolvency Practitioner can explain whether that applies to you.
We cover this in more detail in our guide on whether an IVA stops bailiffs.
Don't ignore it, and don't let anyone into your home if you're unsure. You can get free, immediate guidance from National Debtline or Citizens Advice, and you can talk to us about whether an IVA or another solution fits your situation.
Can council tax debt be written off in an IVA?
Within an IVA, council tax arrears are treated like your other qualifying unsecured debts. You make affordable payments for the agreed term — usually five to six years — and at the end, any qualifying debt included in the arrangement that you haven't been able to repay is written off.
How much that is depends entirely on your individual circumstances: your income, your essential outgoings, and what your creditors agree to. We can't promise a set figure, and you should be wary of anyone who quotes a fixed percentage before looking at your situation. The honest answer is that it's tailored to what you can realistically afford.
Searches like “how to get council tax debt written off” are common, but it's worth being realistic: councils rarely simply cancel arrears. What an IVA can do is fold those arrears into an affordable plan and write off whatever remains on qualifying debts at the end — a structured route rather than a quick cancellation.
What about this year's council tax?
This is the part people most often miss, so it's worth being clear. An IVA deals with the council tax arrears — the money you already owe. It does not cover your ongoing council tax for the current and future years.
You still need to keep paying your current council tax as it falls due. When your IVA budget is put together, that ongoing council tax is treated as an essential household bill (just like rent, energy and food), so it's built into your budget before your IVA contribution is worked out. The aim is a plan that clears the old arrears while keeping you on top of what's currently due.
Other help with council tax arrears
An IVA is one route, but it isn't the only one, and it isn't right for everyone. Depending on your circumstances you might also consider:
- A repayment arrangement directly with your council. Many councils will agree to spread arrears over a longer period if you contact them early.
- Council Tax Reduction (sometimes called Council Tax Support) if you're on a low income or certain benefits — check with your local council.
- A Debt Management Plan if your situation is less severe and you'd prefer an informal arrangement.
- A Debt Relief Order if you have low income, few assets and relatively modest debts.
- Breathing Space (the Debt Respite Scheme), which can pause enforcement and contact while you get advice.
For free and impartial information on council tax arrears specifically, GOV.UK, Citizens Advice and StepChange are all good starting points.
Worried about council tax arrears?
Tell us a little about your situation and we'll explain, clearly and free of charge, whether an IVA could help — with no judgment and no obligation.
See if you qualifyWhat to do next
If council tax arrears are part of a bigger debt picture — several creditors, mounting letters, maybe enforcement action — an IVA may be a way to bring it all into one affordable monthly payment and stop the arrears growing. The first step is simply to talk it through.
Our advice on your options is always free, and if an IVA isn't the right fit we'll be honest and point you towards a solution that is. You can get in touch here or read more about how IVAs work.