6 year IVA payment period

An Individual Voluntary Arrangement (IVA) can in some circumstances, be extended to six years by your unsecured creditors. You get protection from those creditors and you only pay back a proportion of your unsecured debts and write the rest off.

If you’re worried about your debts, PayPlan can help you. Call us now on 0800 280 2816 or, if you’d prefer, click the “Get advice now” button to request a call back.

Get advice now

PayPlan help people in debt

Over the last twenty years, PayPlan have helped millions of people who were having difficulty in paying their debts.

Everyone’s circumstances are unique, and our experienced advisers will be able to suggest next steps for you no matter what your financial situation.

This page outlines a very specific case study: where a client took six years to pay only a proportion of his unsecured debts after we set up an IVA for him. 

Read our client testimonials

IVA case study – six-year payment period

We helped a sales manager who owed over £100,000 on unsecured loans, credit cards and store cards. He used to earn significantly more in his previous job but was made redundant, and had a reduced income. After his living costs, he could afford to make a monthly payment of £200 to his arrangement.

Due to there being a low return to creditors over 5 years, the client proposed a six year IVA to his unsecured creditors.   The client preferred this over bankruptcy due to the possible effects of bankruptcy on his future career.

Creditors accepted the IVA, as they agreed it was the highest return they were likely to receive, even though the return was lower than they would usually agree to. Creditors agreed to write off £85,000 of his unsecured debt and reduced his monthly debt payments by more than £2,000.

An IVA may help you if you extend the payment period to six years

Are you serious about getting out of debt?

Successfully completing an IVA means avoiding bankruptcy and not having to deal with any more unsecured creditor demands for payment. You’ll normally make just one affordable payment for a set period of time, and creditors included in the IVA must freeze interest and charges at the point your IVA is agreed.

Become a PayPlan IVA client and you get:

  • A personal debt adviser to handle your IVA case
  • Just one regular payment to make, based on what you can afford to pay
  • All the support of a company who have, over the last twenty years, helped tens of thousands of people achieve debt-free status through an IVA
  • After the agreed IVA period, whatever unsecured debt remains is written off

And remember, at PayPlan, we do not charge any upfront fees for setting up an IVA.

However you must bear in mind that if you were, for whatever reason, to stop making payments to your IVA then your plan may fail; in which case your creditors may re-apply interest and charges (which were frozen at the point your IVA was approved) or may even petition for your bankruptcy. Read more about the pros and cons of an IVA.

Want to avoid bankruptcy? Think an IVA could help you manage your debts more affordably? Many people choose to call us on 0800 280 2816 for free no-obligation debt advice, while others prefer to fill in our online Debt Help form so we can call them back.

More IVA Information