An IVA for a foster carer

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 who was a foster carer was able to ultimately avoid bankruptcy and the potential loss of her job, and then repay only a proportion of her unsecured debts after we set up an IVA for her.

IVA case study – the foster carer

We helped a client who was a foster carer who owed £25,000 mainly on credit cards. She fostered between one and three children at any one time and was worried about being made bankrupt as this would have prevented her from being a foster carer.  

We firstly assisted her with compiling a 12-month cash flow for their business, as the income was dependent on how many children she was fostering at any one time. We achieved this by meeting in person to examine her bank statements and proof of fostering income.  

After the client’s business expenditure and personal living costs were taken into account, she could afford to make an average monthly payment of £220 to her debts. However, as her income was dependent upon the number of children she was fostering, she was not able to pay £220 every month to her IVA, but instead creditors agreed for to contribute an average of £220 a month during the IVA.  

The IVA was approved by the creditors, which allowed the client to pay her debts off in five years. Creditors agreed to write off £12,000 of her unsecured debt and reduced her monthly debt payments by more than £600.

An IVA may help you if you are a foster carer

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.

Free IVA Advice

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. [contentblock id=21 img=gcb.png]

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.