IVA – self-employed and ‘part-time’ landlord

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 self-employed, and a landlord, and you’re 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 a self-employed person and ‘part-time’ landlord was able to avoid bankruptcy, and then repay only a proportion of his unsecured debts and keep his buy-to-let property, after we set up an IVA for him.

IVA case study – self-employed client is also a ‘part-time’ landlord

We helped a self-employed financial adviser who owed around £80,000 on unsecured loans and credit cards. He owned a buy-to-let property which was rented out to tenants.   He was worried that he would be forced into bankruptcy, which would mean he would not be able to continue trading as a financial adviser and that his property would probably be sold.  

We firstly assisted the client with compiling a 12-month cash flow for his financial advisor business. We met in person to discuss his income and examine his bank statements and business accounts. We then prepared a cash flow for his buy-to-let property, showing his monthly rent received and mortgage payments. After the client’s business expenditure and living costs had been taken into account, he could afford to make a monthly payment of £330 to his arrangement.   

We set up an IVA where he paid £330 a month for five years. Creditors agreed to write off around £60,000 of his debt and reduced his monthly debt payments by more than £1,500. He continued trading, his properties were protected and he was debt free in five years.

An IVA may help you if you’re self-employed and a ‘part-time’ landlord

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.