IVA – If County Court Judgment (CCJ) is outstanding

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 enter into an IVA even though County Court Judgment had already been obtained against her. She was able to ultimately avoid bankruptcy and repay only a proportion of her unsecured debts after we set up an IVA for her.

IVA case study – outstanding CCJ

We helped a child minder who owed approximately £20,000 on credit cards and ‘payday’ loans.  

Due to not seeking debt advice earlier, she was unaware how to deal with her creditors when she could not afford the full payment.   One of her creditors had obtained a County Court Judgment against her and was threatening either bailiffs, deducting money from her earnings or making their debt secured on her home.   After her living costs were taken into account, she could afford to make a monthly payment of £120 to her debts.

An IVA was set up, which stopped legal action continuing. Creditors could not take any more legal action and the County Court Judgment was included in the IVA. The client paid £120 a month into the IVA for 5 years, and avoided bankruptcy which would have put her home at risk. The creditor who had the County Court Judgment received a payment from the IVA in full and final settlement of their debt.

Creditors agreed to write off over £12,000 of her unsecured debt and reduced her monthly debt payments by more than £400.

An IVA may help you, even if you have an outstanding CCJ

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.