IVA – When a third party contributes to monthly payment
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 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.
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 third party (in this case, parents) was able to make a contribution into a client’s IVA so he could ultimately avoid bankruptcy and then repay only a proportion of his unsecured debts after we set up an IVA for him.
IVA case study – when a third party contributes to your IVA
We helped a factory worker who owed over £30,000 on unsecured loans, credit cards and ‘payday loans’. He owned his own home where he lived with his wife and two children. He was desperate to avoid bankruptcy as he didn’t want to lose his property. Unfortunately, after taking into account his living costs, he could not afford to make a monthly payment to his unsecured debts.
When we discussed the debt solution options with him, he mentioned that his parents would be willing to contribute £100 a month for him to pay his debts. We set up an IVA for him where his parents paid £100 a month to his IVA for five years. He therefore avoided bankruptcy which would probably affect his property and was debt-free within five years. Creditors agreed to write off £24,000 of his unsecured debt.
An IVA may help you if a third party can contribute to your IVA
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.