IVA and bailiffs

An Individual Voluntary Arrangement (IVA) is normally a five-year agreement with your unsecured creditors that helps you avoid bankruptcy. 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. You can call us now on 0800 280 2816 or, if you’d prefer, click the “Get advice now” button to request a call back.

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PayPlan help all kinds of 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 was able to stop bailiff action and bankruptcy, and then repay only a proportion of her unsecured debts after we set up an IVA for her.

IVA case study – when dealing with bailiffs

We helped a care worker who owed approximately £10,000 on unsecured loans, credit cards and ‘payday loans’.

She was not sure how to deal with her creditors if she couldn’t afford the full payments and instead of seeking debt advice, she made no payments at all. This resulted in a creditor obtaining a County Court Judgment and then instructing bailiffs to visit her property.

She was worried that bailiffs would gain access to her property and remove her possessions.   After her living costs were taken into account, she could afford to make a monthly payment of £100 to her debts.

Creditors agreed to an IVA where she paid £100 a month for five years. Bailiffs were not allowed to visit the client’s property, as an IVA stops the creditors from continuing legal action. The creditor who had instructed bailiffs received the payment from the IVA in full and final settlement of their debt.

Creditors agreed to write off £4,000 of her debt and reduced her monthly debt payments by more than £300.

An IVA may help you if you’re experiencing debt recovery action that involves bailiffs

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 bankruptcy

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.