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IVA – full and final settlement by client

An Individual Voluntary Arrangement (IVA) can involve a one-off payment in full and final settlement of your debts. You get protection from your 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. 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 client was able to avoid bankruptcy and then repay only a proportion of his unsecured debts after we set up an IVA for him.

IVA case study – full and final settlement

We helped a factory worker who owed over £15,000 on loans, store cards and ‘payday loans’. He was paid a low wage and after taking into account his living costs, was unable to afford a reduced monthly payment to his debts.

However, he had just received compensation of £5,000 relating to a mis-sold Payment Protection Insurance policy by one of his creditors.

We set up an IVA where he paid £5,000 compensation into his IVA in full and final settlement of his debt. The IVA was completed within six months, with creditors agreeing to write off £10,000 of his debt.

His IVA did not last five years as he was unable to make a monthly payment towards his debts, and instead he was debt-free within just six months.

An IVA may help you if you’re able to offer a ‘full and final settlement’

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:

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.

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.

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Example IVA

In this typical example, we arranged an IVA for our client who was struggling to repay his debts. His payments are now more affordable!

  • Debt: £20,000
  • Creditors: 3
  • Was paying: £520 per month
  • Now paying: £120 per month
  • Written off: £12,000
See examples IVA advice

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