You need to read the rules of the local authority you are seeking election too.
It also depends whether you are looking to be local authority councillor (you receive an allowance for) or a town and parish councillor (voluntary).
I have been a town councillor since 2009, which at the outset I was in an iva.
The guidance I had to follow was clear in local authority elections in as far as bankruptcy was a definite no, but debt management plans and ivas were considered on a case by case basis, but for town council election I did not have to declare it.
I am also a school governor and the paperwork I had to fill in was very similar in questioning and if bankrupt the answer was no. I think this was to do with fact school governor roles are linked to local authority education.
Hope this helps.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !