IVA – Possible annulment of bankruptcy

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 normally 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 enter into an IVA even though a bankruptcy petition had already been made against her. She was able to ultimately avoid bankruptcy and repay only a proportion of her unsecured debts after we set up an IVA for her.

IVA case study – annulment of bankruptcy

We helped a nurse who owed £8,000 on credit cards and also had Council Tax and utility arrears.   She informed us that she had been made bankrupt by one of her creditors. She lived alone in a solely-owned mortgaged property with £80,000 equity, and naturally she was extremely anxious to protect this property. In bankruptcy, this property would be sold to pay her debts. After her living costs were taken into account, she could afford to make a monthly payment of £400 to her unsecured debts.

We set up an IVA, where she would make a monthly payment of £400 a month until her debt and our administration costs have been paid in full.   Her IVA was accepted by her creditors, and we could then take steps to annul the bankruptcy. This means she would no longer be bankrupt and lose her property.

Her IVA was successfully completed after three years, creditors received payment in full and she could stay in her property.

An IVA may help you annul a bankruptcy

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.