Why choose an Individual Voluntary Arrangement (IVA)

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The legislation covering Individual Voluntary Arrangements (IVAs) was part of an act of parliament written in 1986. The idea behind the legislation was to allow anyone with unaffordable debts to agree a deal with their creditors which would allow them to make a monthly payment they could afford towards their debts. Any unsecured debts would be written off at the end of the IVA.

Here’s how it works:

  • We’ll start by going through your income, expenditure and debt level with you to see which debt solution is the best for your circumstances.
  • 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.

  • Under the contract the debtor (you) make a monthly payment – usually for five years – and at the end, your remaining debts are written off.

  • The 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 the 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.