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Will My IVA Bind The Spanish Bank Or Other Foreign Banks I Owe Money To?

The quick answer

Yes it will. You should make sure the foreign bank are on your creditors list and that they are notified of the proposed IVA (Individual Voluntary Arrangement). If the bank debt relates to property loan abroad is is also worth notifying any management company as well as the local authority for council tax arrears.

In more detail

If the bank has repossessed a property from you, a typical example in this case being a Spanish holiday home, then you need to estimate the shortfall on sale as an unsecured amount. That amount is how much the bank will lose and let them be able to claim in your IVA for that amount. They can also vote on the IVA based on that amount.

If the bank have not yet repossessed the foreign property then you should still include them for this estimated shortfall and notify them. It is best the are notified by email and post.

To discuss Individual Voluntary Arrangements and foreign banks further, please don’t hesitate to contact us.

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If you would like to know more about an IVA and foreign creditors please speak to one of our team today.


If you need insolvency advice the earlier you talk to someone like us the better as you will have more options. We can help, contact us today.

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David Kirk


David Kirk ACA FABRP

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David Kirk

Licensed Insolvency Practitioner