Single - Non Homeowner - Lump Sum IVA
A Single IVA is for people who are struggling to maintain their unsecured debts and are looking to deal with their debt problem on their own, without the involvement of anyone else. Whilst it may sound like all the debts to be included in this type of IVA must be solely owed by the IVA applicant, that isn't the case. Indeed, many 'Single IVA' applications will include debts originally taken out as joint agreements, with more than one persons name on the paperwork. When this is the case, the other party should to talk to the creditor concerned and establish a repayment plan of their own, in order to deal with their continued liability for the debt.
The person using this type of IVA would typically be a tenant, renting a room, lodging with friends or even living with family. Whatever their living arrangements, their IVA will be a more straightforward affair, because their IVA will not involve the introduction of an asset as part of the agreement.
This type of IVA will consist of a 'Full and Final Settlement' or 'Lump Sum' IVA as it is often referred to. This means that rather than paying 5 years of repayments towards the IVA, the IVA will begin and end with just one payment to creditors.
The suitability of this type of IVA would normally favour people who cannot afford to make ongoing monthly payments. Indeed, it is mainly due to a lack of affordability that creditors will seriously consider the option of a Lump Sum IVA.
The funds for this type of IVA would ideally be provided by a 3rd party such as a friend or relative, or at least someone not directly associated with the debts. This is because the 3rd party would be providing funds that creditors would not be entitled to in a bankruptcy, which provide a distinct advantage for the IVA option.
The Lump Sum IVA has all the benefits of any other IVA, providing a guarantee to freeze interest, a stop on all other creditor charges and a block on creditors taking legal action, but it also carries the extra benefit of no future payments. This can be invaluable if you have recently experienced a significant change in income, such as reduced work hours, a drop in pay, or even an increase in expenditure, say after the birth of a baby.
Summary:
This type of IVA allows a person living in rented accommodation the opportunity to become debt free with a single payment and it provides a legally binding agreement that obliges creditors to write-off any outstanding balances left unpaid by the IVA's lump Sum.
To discuss this type of IVA in more detail with one of our IVA consultants simply call 0800 856 8569
If you simply want to have a chat about your options, or would like to ask a question about your solution. We invite you to call us at a time that suits you on.
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If this type of IVA is not what you were look for, answer the 3 simple questions below to find the type of IVA that would suit you.
An IVA can help a single person or two people sharing joint living costs deal with their debts.
Which type would be suitable for you?
