IVA – family with joint debt

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 worried about your family 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 family was able to avoid bankruptcy and the potential loss of their home, and then repay only a proportion of their unsecured debts after we set up IVAs for both the husband and the wife.

IVA case study – family with joint debts

We helped a family who owed over £60,000 on unsecured loans, credit cards and store cards. The husband was a government worker and his wife worked part-time in a local supermarket. They owned their own home and had two young children.

After taking into account both their wages and deducting their living costs, they could afford a reduced monthly payment of £300 towards their unsecured debts.

As IVAs are individual, we needed to set up one IVA for the husband and one IVA for his wife. Their overall monthly payment was split between each IVA.

When they finished their IVAs, unsecured creditors had written off £42,000 and reduced their monthly unsecured debt payments by more than £1000.The IVAs protected their home, made them they became debt-free within five years and gave them peace of mind, as it stopped contact from those creditors.

An IVA may help you if your family has joint debts

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.