Councils do vary in their reaction to an IVA through, for the most part, ignorance of the situation. I know that mine simply write off any arrears as soon as an IVA is entered, along with the current year. They do not involve themselves with the IVA at all as it costs more to administer than they would actually get back in dividend payments.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk
Thinking about it I think the local authority recalled the account from the bailiff when they received the proposal, they did make a claim in the IVA but the big thing for me was getting the bailiff out of the picture.