IVA – Making a full repayment

An Individual Voluntary Arrangement (IVA) is normally a five year agreement with your unsecured creditors that helps you avoid bankruptcy. In some circumstances, you can propose an IVA when you can pay those creditors back in full, and continue to be protected from them.

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.

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IVA case study – making a full repayment

We helped a couple who owed £25,000 to many different unsecured creditors. There were 22 in all, comprising loans, credit cards, store cards and pay-day loans. The husband worked as a security guard and the wife worked as a waitress. After their living costs were taken into account, they could afford to make a monthly payment of £500 to their debts.

We discussed the available debt solutions with the clients, and they were initially keen on entering a Debt Management Plan, as it appears they will be able pay their debts in full in around 4 years. However, the clients had already been making reduced payments to their debts themselves and six of the creditors had already indicated they would not be prepared to freeze interest and charges.

Due to this, they preferred to each enter an IVA. Even though they would pay their debt back in full in an IVA, they preferred the security of knowing that creditors must freeze interest and charges in an IVA. Their IVA lasted five years, after which they were debt-free.

An IVA may help you, even if you would prefer to make the full repayment of your debts

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

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.