IVA – Possibility of a shorter-term arrangement

An Individual Voluntary Arrangement (IVA) can in some circumstances be shorter than five years. You get protection from your creditors and you still 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 a client was able to make regular payments for less than five years, ultimately avoid bankruptcy and the potential loss of her job, and then repay only a proportion of her unsecured debts after we set up an IVA for her.

IVA case study – a shorter-term arrangement

We helped an accountant who owed £80,000 on unsecured loans and credit cards.

She lived with her partner in a jointly owned property with £30,000 equity. After her living costs, she could afford to make a monthly payment of £600 to her debts.

However the accountant was due to retire in three years’ time and had no pension provision so could not then afford to make payments to her creditors. She was also worried about bankruptcy as it may affect her employment, and also her property.

We set up an IVA, where she made monthly contributions of £600 per month for the next three years. As she could not afford to make any payments to her unsecured creditors when she retired, her creditors agreed that the IVA could finish after three years. Creditors agreed to write off nearly £60,000 of her debt and reduced her monthly debt payments by more than £2,000.

An IVA may help you, even if you would prefer a shorter payment period than the normal five years

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.