IVA – Interim Order
An Individual Voluntary Arrangement (IVA) is normally a five-year agreement with your unsecured creditors that helps you avoid bankruptcy. You get protection from those 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. You can call us now on 0800 280 2816 or, if you’d prefer, click the “Get advice now” button to request a call back.
IVA case study – Interim Order
We helped a self-employed builder who had been issued with a bankruptcy petition by the tax authorities. The builder owned his own home and really wanted to avoid bankruptcy as he employed 6 people. In bankruptcy, his employees would be made redundant.
We contacted the tax authorities to ask them to put the bankruptcy hearing on hold until the IVA was approved by creditors. Once the IVA was approved, the bankruptcy hearing would be dismissed. However, the tax authorities refused to put the bankruptcy hearing on hold.
We applied to the court for an Interim Order, which prevents any legal action commencing or continuing without the permission of the court. This prevented the client from being made bankrupt which gave time for the IVA to be put forward.
The IVA was set up and agreed by the creditors, the bankruptcy petition was dismissed and the debt to the tax authorities was included in the IVA. This saved 6 jobs as the client was able to retain his staff and also keep his home. Creditors agreed to write off £80,000 of his unsecured debt and reduced his monthly debt payments by more than £3,000.
An IVA may help you if you’re in debt and facing bankruptcy
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.