An IVA or Individual Voluntary Arrangement is a formal debt solution that can help you deal with your unaffordable debts. In an IVA your debt repayments are usually lowered to an amount that you can afford to pay each month and on completion of the IVA, any remaining debt is leagally written off. In order to help explain how an IVA works, we have included some IVA Example cases below.
We have provided a mix of IVA cases with varying debt levels, just so you have an idea of how an IVA might work for you. If you would like to know more about an IVA, please get in touch with us at McCambridge Duffy.
Remember, no two IVAs are the same because it will depend on the following circumstances:
If you want to know more about an IVA and find out out if it might be a suitable solution for you, then click here to fill in the form on this page and one of our IVA advisors will contact you to discuss your options.
Our client in this example had to take some time off work to look after the family, after his wife spent some time in hospital. This resulted in some financial struggles due to lower income. At the time of contacting us he was up to date with the payments, but was at the point where he was about to start missing them. We were able to assess his situation and advise on all options. He decided that an IVA was his best course of action.
We were able to successfully negotiate an IVA with his creditors where his debt payments were lowered from £706 per month to £200 per month. After the 60 month period he will have paid back £12,000 and the remaining £20,000 will be written off on completion.
Our client had an increase in his debts after losing his job. He was unable to maintain car payments and was liable for the shortfall as a result. After gaining employment he found that he was still unable to afford the contractual repayments on his debts.
We put forward an IVA proposal on his behalf which was accepted by creditors and his monthly payments were dramatically lowered from £720 per month to an affordable amount of £120 per month. He will repay £7,200 towards his debts and the remaining £3,750 will be written off on completion of his IVA.
Our client started experiencing financial difficulty after the breakdown of her marriage. During the split, she went without child maintenance for some time and as a result she had to deal with all childcare costs on her own, using credit to help get through this period. She contacted us in the hopes that she could gain some sort of control over her debts and manage everything with one affordable monthly payment. She also wanted an end in sight to the debts and to get out of the cycle of using credit to pay for credit every month.
After speaking with us she decided that an IVA would be her best option. We managed to reduce her monthly payments down from £1,131 per month to £500 per month in the IVA. She will repay £30,000 and the remaining debt of £20,211 will be cleared when her IVA is finished.
Our client went through a separation and had to move back with her parents. She had no assets with her ex partner but they did have a child together. The ex partner doesn't pay any child maintenance. Instead, he buys things for the child as and when he can. She can afford a monthly payment of £200 in her IVA, but there will be an uplift in this payment when her car HP ends.
When our client was starting to struggle financially, he took out another loan to clear some of his debts. However, he still had a few debts remaining and with those repayments and the loan repayments, he overcommitted himself and found that he was cutting back on his living costs just to pay the debts.
With a baby on the way he knew that he could no longer continue like this so contacted us for help and advice. He didn't want to end up in a cycle of borrowing credit to pay credit. He opted for an IVA and we put forward his proposal to his creditors an amount of £180 per month. His IVA was accepted and he is now making much more affordable monthly payments. When he is finished his IVA, the remaining debt of £17,685 will be cleared and he will start over debt free.
In this example our client had been managing his payments comfortably, until his child maintance dropped from £200 to £80 due to his ex losing her job. He had to make up for the loss of money which lead to him struggling to meet his debt repayments. He started to cut back on household costs to do this, but this was no way to live.
He could no longer continue in this way as his life was starting to suffer, so contacted us in the hopes that he could address the debts but in a way he could afford. After reviewing his options, he opted for an IVA to deal with his debts. His monthly debt repayments were reduced from £439 to £140.
Our client accrued most of his debt when he moved into a property on his own. Financially, it was a struggle to adjust. He used credit to help with bills but unfortunately things escalated and he was unable to get on top of his situation. He had missed repayments and knew he needed help, so contacted McCambridge Duffy. We were able to help with an IVA. His monthly debt repayments were lowered from £305 to £100 per month in his IVA. He will repay £6,000 and the remaining £4,700 will be written off on completion.
Our client was struggling with monthly debt repayments of £785 to several creditors. We were able to have this reduced to £260 per month, with all interest and charges frozen. After 60 months of paying this reduced amount, any remaining debts will be written off and they will start their life free of debt. On completion of the IVA £15,600 will be repaid and £22,400 will be written off.
Our client was paying over £920 per month on credit cards and loans totalling £33,000. We were able to have this reduced to £350 per month, with all interest and charges frozen. After 60 months of paying this reduced amount their IVA was complete, their remaining debt was written off and they were free of their debts. They repaid £21,000 and £12,000 was written off.
A couple were paying over £700 per month on joint debts of £46,000. We were able to have this payment reduced to £300 per month, with all interest and charges frozen. After 8 months of paying this reduced sum, they proposed to remortgage their home. This was successful and they released £19,000. Their creditors accepted this amount as a full and final settlement of their debts.
Our client was struggling with very high debt repayments of £1,550 per month which was far too unmanageable. After assessment of his situation we worked out what he could actually afford. We were able to negotiate payments of £440 per month with his creditors in an IVA. After 60 months, his remaining debts will be written off and he can start life free of debt. £26,400 will be repaid and £32,600 will be written off on completion.
Our client was struggling with monthly debt repayments of £560 on debts totalling £19,000. We were able to have this reduced to £250 per month in an IVA, with all interest and charges frozen. After 60 months of paying this reduced amount she will become debt free and any remaining debt will be written off. £15,000 will be repaid and £4,000 will be written off.
Our client was struggling with payments of £600 per month on all of their debts. We were able to reduce the payment to £240 per month. After 60 months of paying this reduced amount, any remaining debts will be written off and they will start their life free of debt. £14,400 will be repaid and £10,600 will be written off.
Our client was struggling with monthly debt repayments of £500 on their credit cards, loans and catalogues. We were able to reduce the monthly repayments to a more affordable amount of £250 per month in an IVA. After 60 monthly payments, any remaining debts will be written off and they will be debt free. £15,000 will be repaid and £7,000 will be written off.
Our client was struggling with monthly debt repayments of £1,141 to their creditors. We were able to have this reduced to £510 per month in an IVA which is more affordable for them. The IVA will last 60 months and on completion, any remaining debts will be written off and they will start their life free of debt. £30,600 will be repaid and £16,200 will be written off.
A Self Employed client was struggling with debt repayments totalling £1,268 per month. We were able to have this reduced to £510 per month with an IVA. He immediately gained peace of mind that his business would be protected from any creditors. After 60 months of paying this reduced amount, he will be debt free and able to start afresh. £30,600 will be repaid and £52,400 will be written off.
Our client was struggling with monthly debt repayments of £1,156 on debts totalling £47,000. We were able to have this reduced to £388 per monthwith an IVA. On completion of the IVA any remaining debts will be written off. £23,280 will be repaid and £23,720 will be written off.
Our client was struggling with monthly debt repayments of £353 on debts totalling £17,674. We reduced this to £114 per month in an IVA. On completion of the IVA any remaining debts will be written off. £6,840 will be repaid and £10,834 will be written off.
Our client was struggling with total debt repayments of £807 per month on debts totalling over £40,000. We were able to reduce the monthly payments to a more affordable amount of £248 per month in an IVA. On completion of the IVA £14,880 will be repaid and £25,487 will be written off.
Our client could not afford their total debt repayments of £562 per month on debts of over £19,802. We were able to reduce the monthly payments to a more affordable amount of £187 per month in an IVA. When their IVA is finished they will have repaid £11,220 and the remaining £8,582 will be written off.
Our client was struggling with total debt repayments of £455 per month on debts of £19,900. We were able to reduce the monthly payments to a more affordable amount of £200 per month in an IVA. On completion of the IVA £12,000 will be repaid and the remaining £7,900 will be written off.
Our client was struggling with total debt repayments of £300 per month on debts of £20,750. We were able to reduce the monthly payments to a more affordable amount of £150 per month in an IVA. On completion of the IVA £9,000 will be repaid and the remaining £11,750 will be written off.
Our client was struggling with total debt repayments of £565 per month on their credit cards, loans and overdraft. Their debts were amounting to £14,000. We were able to reduce their monthly payments to a more affordable amount of £180 per month in an IVA. On completion of the IVA £10,800 will be repaid and the remaining £3,200 will be written off.
Our client was struggling with total debt repayments of £582 per month on their credit cards, loans and overdraft. His debts were amounting to £39,800. We were able to reduce his monthly payments to a more affordable amount of £208 per month in an IVA. On completion of the IVA £12,500 will be repaid and the remaining £27,300 will be written off.
Our client was struggling with total debt repayments of £720 per month on her debts of £18,800. We were able to reduce her monthly payments to a more affordable amount of £150 per month in an IVA. On completion of the IVA £9,000 will be repaid and the remaining £9,800 will be written off.
1: We do not charge upfront fees for drafting and submitting your IVA Proposal. We only put an IVA case forward if we believe it will be a successful one for both you and your creditors. If however, in the event that your IVA proposal is unsuccessful, then you will not be charged a penny.
2: The fees for an IVA are all set by the creditors (no matter which provider you use), so if your IVA application is successful, the only thing to worry about is whether you have chosen the right Insolvency Practitioner.
3: All fees are taken out of your affordable monthly payment so you will never be asked for additional fees or receive a bill from us.
4: We are the longest established IVA provider in the UK and have thousands of happy clients. We also have one of the highest success rates in the industry.
5: We have 4 full time highly regulated Insolvency Practitioners giving us a wealth of experience and knowledge (most other providers have just 1 or 2), so we have probably seen all possible circumstances.
Call us now on 0800 043 3328 to chat with an IVA advisor.
" McCambridge Duffy have been great, completely open, honest and non-judgemental from the first phone call. Kept me fully informed through every stage, always did exactly what they said they would and always got back to me promptly. Fully recommended."
Work out what your new monthly IVA repayment could be by filling in our debt and budget calculator form.
In the IVA example pictured above, our client was struggling with payments of £600 per month to their creditors. We were able to reduce the payment to £240 per month. After 60 months of paying this reduced amount, their IVA will be complete. Any remaining debts will be written off and they will be able to start over debt free.
Chat with one of our debt advisors. We are available to answer any of your questions.
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