IVA – partnership without 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 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 two partners were able to avoid bankruptcy and ultimately repay only a proportion of their unsecured debts after we set up a Partnership Voluntary Arrangement (PVA) for them.

PVA case study – how not using interlocking IVAs can help a partnership

We helped a husband and wife Partnership who ran a fish and chip shop. The Partnership owed £30,000 in bank loans that they were unable to pay.  

Even though the partnership was struggling to pay the debts, the individual partners had little additional personal unsecured debt. 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 met the partners in person to discuss their debt solution options with them. We produced a 12-month cash-flow for the Partnership after examining their accounts and bank statements.  

We also negotiated with the Partnership creditors, who agreed not to take any action against the individual partners, as they had limited assets. This meant we did not need to also set up IVAs for the individual partners. We set up a Partnership Voluntary Arrangement (PVA) to deal with the Partnership debts, which allowed the Partnership to continue trading. The Partnership contributed £200 a month to their PVA for five years.

Creditors agreed to write off £8,000 of the Partnership debt and reduced their monthly debt payments by more than £400.

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 2816 for free no-obligation debt advice, while others prefer to fill in our online Debt Help form so we can call them back.