IVA – Shorter-term arrangement with lump sum

An Individual Voluntary Arrangement (IVA) can in some circumstances be shorter than five years. You get protection from your creditors and you 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 and then pay her creditors a lump sum, 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 – shorter-term arrangement with lump sum

We helped a police officer who owed £40,000 on unsecured loans and credit cards.

She lived with her partner in rented accommodation. After her living costs were taken into account, she could afford to make a monthly payment of £300 to her debts. However she was due to retire in 2 years, so would not be able to afford this payment once she retired. She did inform us that she was to receive a lump sum from her police pension of £30,000 when she retired.

We set up an IVA, where she made monthly contributions of £300 per month for the next two years. When she retired, her creditors agreed to accept £15,000 from her police pension in full and final settlement of her IVA. They realised she needed the other £15,000 to help support her retirement. Her IVA therefore finished in two years, creditors agreed to write off nearly £20,000 of her unsecured debt and reduced her monthly debt payments by more than £800.

An IVA may help you, if you would prefer a shorter payment period than the normal five years and can make a lump sum payment

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.