IVA – Partnership with interlocking IVAs
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 working in a partnership and worried about your debts, PayPlan can help you. Call us now on 0800 280 2816or, if you’d prefer, click the “Get advice now” button to request a call back.
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 two individual partners were able to avoid bankruptcy, and ultimately repay only a proportion of their unsecured debts after we set up IVAs for them.
IVA case study – in a business partnership
We helped a Partnership who ran a takeaway business. The Partnership owed £60,000 in unsecured bank loans, and the two individual partners also owed money on credit cards and to tax authorities. Partners are personally liable for the partnership debts so they were worried that their own personal assets would be at risk, and that their Partnership would be dissolved in the event of bankruptcy.
We firstly, met the partners in person to discuss their debt solution options. We produced a 12-month cash-flow for the Partnership after examining their accounts and bank statements. We set up a Partnership Voluntary Arrangement (PVA) for the Partnership which ensured that the Partnership creditors could not take any action against the Partnership. The partnership contributed £300 a month to the PVA for five years.
We also set up an IVA for each partner, so that the credit cards and tax authorities did not take any action against the individual partners. After their living costs were taken into account, one partner made a reduced payment of £200 a month and the other a reduced payment of £100 a month to their arrangement. Creditors agreed to write off £42,000 of Partnership debt and £20,000 of unsecured debt. Their monthly payments were reduced by more than £1,500.
An IVA may help you if you’re in a partnership
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 2816for free no-obligation debt advice, while others prefer to fill in our online Debt Help form so we can call them back.