IVA – homeowner with mortgage

An Individual Voluntary Arrangement (IVA) is normally a five year agreement with your creditors that helps you avoid bankruptcy. 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 a homeowner and 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 homeowner with a mortgage was able to avoid bankruptcy and the potential loss of her home, and then repay only a proportion of her unsecured debts and keep her home after we set up an IVA for her.

IVA case study – homeowner with mortgage

PayPlan helped a nurse who owed over £25,000 on credit cards. She owned her own home, and was worried that she would be forced into bankruptcy where of course she risked losing her home.

We set up and completed an IVA where she paid £150 a month for 5 years. As she owned a property, she was asked to obtain a valuation of her property in month 54 of the 60 month IVA. Since she had equity in her property, she had to attempt re-mortgage to release the equity in her property

As she was unable to re-mortgage, her IVA was extended by 12 monthly payments of £150. Her home would never be at risk of being sold. If she had little equity 6 months before the end of the IVA, she would not be expected to re-mortgage and her IVA would end after 5 years.

When her IVA had finished after six years, creditors had agreed to write off almost £15,000 of her debt and reduced her monthly debt payments by more than £500.   She therefore avoided bankruptcy, was debt-free within six years and her home was protected.  

An IVA may help you if you’re a homeowner with a mortgage

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 an IVA.

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.