Why choose an Individual Voluntary Arrangement (IVA)
An Individual Voluntary Arrangements (IVA) is a type of debt solution that allows you to ‘write off’ some of your debt. It’s a formal agreement with your creditors that involves making one, affordable monthly payment to all of your debts for 5 or 6 years. At the end of your IVA, any unsecured debt such as credit cards, personal loans, catalogue debts etc are written off and you will be debt-free.
Here’s how it works:
- We’ll start by going through your budget to look at your income, outgoings and debt level with you to see how much money you have leftover each month to pay towards your debts.
- If an IVA is the right solution for you, we will agree an affordable monthly payment based on your household budget. This information will then be transferred to one of our sister companies – PayPlan Partnership Limited for IVAs and PayPlan Bespoke Solutions for Self-Employed IVAs who will manage the IVA process for you.
- Your offer will be sent to your creditors in the form of a proposal. Once they have reviewed the offer of payment, the creditors will then vote yes or no to accept the proposal.
If three-quarters of the creditors (by debt value) agree to the proposal, then it becomes a legally binding contract. Over 90% of proposals sent by PayPlan Partnership Limited or PayPlan Bespoke Solutions are agreed to.
As part of the contract, you will make your affordable monthly payment – usually for five years – and at the end, your remaining debts are written off.
Your creditors are also bound by the contract. As long as you keep to your payment schedule and make all of your payments, all interest is frozen and your unsecured debt is written off at the end of the payment term.
An IVA is only available if you live in England, Northern Ireland or Wales. If you live in Scotland, you can apply for a Trust Deed.