IVA – Options for pensioners

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.

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PayPlan help all kinds of 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 clients of pensionable age were able to avoid bankruptcy and the potential loss of their home, and then repay only a proportion of their unsecured debts after we set up an IVA for them.

IVA case study – the pensioner

We helped a couple who were both pensioners who owed over £30,000 on unsecured loans and credit cards.

They had recently retired, and had therefore suffered a reduction in income. They owned their own home which they were anxious to protect.   After their living costs were taken into account, they could afford to make a monthly payment of £200 to their debts.

We helped them both to set up an IVA, which allowed them to each make an affordable payment every month, for five years. As they owned a property, creditors asked them to obtain a valuation of their property, in month 54 of the 60-month IVA. As their mortgage was less than 85% of the value of their property, they had to attempt to re-mortgage to release the equity in their property, and therefore improve the amount their unsecured creditors received.

However, due to their age, they were unable to re-mortgage. They extended their IVAs by 12 payments to compensate their creditors for being unable to re-mortgage. Their home was never at risk of being sold.

Their IVAs finished in 6 years, creditors agreed to write off £15,000 of their unsecured debt and reduced their monthly debt payments by more than £600.

An IVA may help you, even if you are, or are approaching, pensionable age

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 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.