IVA and the franchisee

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 a franchisee 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 franchisee was able to avoid bankruptcy and ultimately keep his franchise, and repay only a proportion of his unsecured debts after we set up an IVA for him.

IVA case study – the franchisee

We helped a self-employed driving instructor who owed over £35,000 on unsecured loans and credit cards.   He was the franchisee of a well-known national driving school who paid a monthly fee to the School in return for the use of a car.

We firstly, examined the franchise agreement and considered whether the franchise would be terminated in some of the debt solutions available to the client. After considering the agreement, and speaking to the franchisor, the franchise was at risk in bankruptcy but not in IVA, providing the client made all his monthly franchise payments.

We met the client in person to compile a cash flow for his business. His income consisted of fees from pupils and his main expenditure was the franchise fee and petrol costs. After his provision for tax and living expenses, he could afford a monthly payment of £210 to his IVA. This allowed him to continue trading and protect his home. Creditors agreed to write off £23,000 of his debt and reduced his monthly debt payments by more than £500.

An IVA may help you if you’re a franchisee

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.