IVA – full and final settlement from sale of house

An Individual Voluntary Arrangement (IVA) can involve a one-off payment to your creditors in full and final settlement of your debts. 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 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 make a significant one-off payment after selling his house, avoided bankruptcy and the potential loss of his home, and then repaid only a proportion of his unsecured debts after we set up an IVA for him.

IVA case study – full and final settlement using funds from a house sale

PayPlan helped a government worker who owed over £40,000 on unsecured loans and credit cards.  

After paying for his monthly mortgage payment and high transport costs, he was unable to afford any payments to his unsecured debts.   He was worried about bankruptcy as it could affect his future employment and his mortgaged property may also be sold.

We set up an IVA where he put his property on the market which was sold within twelve months. The equity from the sale was approximately £15,000 and paid into the IVA in full and final settlement of his unsecured debts.

This particular IVA was completed in an extraordinarily short period of time (fifteen months) with creditors agreeing to write off £25,000 of his unsecured debt. He therefore avoided bankruptcy and was debt free within fifteen months.

An IVA may help you if you’re able to offer a ‘full and final settlement’ using funds from a house sale

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.

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.