IVA – Director of multiple limited companies with buy-to-let property

An Individual Voluntary Arrangement (IVA) is normally a five year agreement with your creditors that helps you avoid bankruptcy. You get protection from your unsecured creditors and you only pay back a proportion of your unsecured debts and write the rest off.

If you’re a director and 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.

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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 director of multiple limited companies was able to ultimately avoid bankruptcy, keep his job, and then repay only a proportion of his unsecured debts after we set up an IVA for him.

IVA case study – director of multiple limited companies

We helped a director of four limited companies who owed over £240,000 on unsecured loans, credit cards and to the tax authorities. He had also personally guaranteed some of the limited company debts. He owned a buy-to-let property which was rented out to tenants. He was anxious to avoid bankruptcy as he would not be able to act as a company director and his property would be at risk.

We firstly met the director in person to examine his accounts and help him compile a 12-month cash flow for each limited company, a 12-month cash flow for his buy-to-let property and discuss a valuation for his limited companies. The cash flow allowed for the limited company to continue trading, and made provision for payment for all the limited company debts.   After the client’s personal living costs were taken into account, he could afford to make a monthly payment of £1,200 to his unsecured debts.

We then set up an IVA for the client, which allowed him to continue trading, retain his status as director of a limited company and avoid his home being sold. Creditors agreed to write off around £170,000 of his unsecured debt and reduced his monthly debt payments by more than £3,000.

An IVA may help you if you’re in a director of multiple limited companies

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.