IVA – full and final settlement from third party

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’s friend was able to make a significant one-off payment so the client would avoid bankruptcy and the potential loss of his home, 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 using third party funds

We helped a bus driver who owed over £30,000 on unsecured loans and credit cards. He owned his own home where he lived with his wife and three children.   After taking into account his living costs, he was able to afford £100 a month as a reduced monthly payment towards his debts.  

When we discussed his debt solution options, he mentioned that he had a friend who was willing to offer £10,000 in full and final settlement of his unsecured debts.

We set up and completed an IVA for him where his friend paid the £10,000 into his IVA. This particular IVA was completed in an extraordinarily short period of time (six months), with creditors agreeing to write off £20,000 of his debt.

He therefore avoided bankruptcy which would probably have affected his property and was debt-free within just six months. His IVA did not need to last five years as his friend only offered the £10,000 on the condition that this amount was accepted in full and final settlement of his unsecured debts.   

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

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.