IVA – full and final settlement from remortgaging

An Individual Voluntary Arrangement (IVA) can involve a one-off payment to your unsecured creditors in full and final settlement of your debts. You get protection from those creditors, then 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 debt payment after remortgaging, avoided bankruptcy and the potential loss of her home, and then repaid only a proportion of her unsecured debts after we set up an IVA for her.

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

PayPlan helped a teacher who owed over £50,000 on unsecured loans, credit cards and store cards. She owned her own home which contained £40,000 equity. She was anxious about bankruptcy as it could affect her future employment and her mortgaged property would probably be sold as a result. After her living costs, she could afford to make a monthly payment of £300 to her debts.

We set up an IVA, in which she obtained an offer of re-mortgage from a mortgage lender. Once the creditors concerned had agreed to the IVA, she re-mortgaged to release £20,000 which was paid into her IVA, in full and final settlement of her unsecured debts.

The IVA was completed within just six months, with creditors agreeing to write off £30,000 of her unsecured debt. She therefore avoided bankruptcy and was debt-free within just six months.

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

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.