Setting up an IVA

When you call PayPlan, we will always go through every option that might be available to you to deal with your debts.

We look at your finances to see what you can realistically afford – and if a self-employed IVA is the right debt solution for you, we’ll refer you to our associated company PayPlan Bespoke Solutions Limited, who will guide you through the process as quickly as possible.

It’s important to take the time to find the right debt solution – and then get this underway as soon as possible – so you can start enjoying life again.

How can a self-employed IVA help you?

A self-employed IVA is designed to protect your personal and business interests. It’s a secure way of paying back your debts.

While you meet your (often) reduced monthly payments, you’ll enjoy the peace of mind that no further legal action can be taken against you, there will be no further interest and charges added, and your business is safe in your hands.

A self-employed IVA provides you with a controlled environment in which to run your business and get on top of your debts.

IVAs managed by PayPlan Bespoke Solutions Limited also have on average a 70% write off rate at the end of the agreement – so you could become debt-free a lot quicker than you would if opted for another debt solution.

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What we’ll need from you:

In order to give you the best advice, we’ll need to know as much as possible about your debts.

The first step of the IVA process is to collect details of how much you earn, what assets you have (if any), and how much you owe.

We will also need details of your business cash flow – both income and expenditure – so we can work out how much you can realistically afford to pay your creditors. This will help us find out what debt solutions could be suitable for you.

After looking at your finances, PayPlan Bespoke Solutions Limited will then help you to create an IVA proposal for your creditors. This will include details of what you can afford after all your business and household expenses have been taken care of.

You will also need to verify your income and expenditure, so you will need to provide certain bits of paperwork:

  • An estimated business cash-flow for the next twelve months
  • A business profit and loss account for the past year
  • An online valuation of your home, and any other properties you own
  • A copy of your latest mortgage statement – and any secured loan statements (if applicable) – to show your creditors the equity position in your property(ies)
  • A copy of your Tax Return for the past year
  • Copies of all personal and business creditor correspondence, so we can get all your account numbers, contact details and latest outstanding balances
  • A valuation of any business assets (if applicable)
  • Evidence of business and/or personal rent payments – either a copy of your rent agreement, or a bank statement showing the payments
  • Details of your council tax obligations – either a copy of your council tax bill, or a bank statement showing the debits
  • Details of any vehicle finance – a copy of the contract(s)

PayPlan Bespoke Solutions Limited can help you collate all this paperwork, and they can even arrange for this information to be collected from you.

Once they have received all your documents, PayPlan Bespoke Solutions Limited will draft your self-employed IVA proposal, detailing the monthly amount you have agreed to pay into your IVA.

They will send you a copy of your self-employed IVA proposal for you to read through, make sure you are happy with it, sign it and send it back.

The self-employed IVA proposal will also show your projected cash-flow for the next 12 months – including an explanation for your creditors about why the cash-flow is realistic, and details of why they should agree to your self-employed IVA proposal.

Your creditors’ decision

After your self-employed IVA proposal has been submitted to your creditors, it is then up to them to decide whether to accept or reject it.

Your IVA Supervisor will hold a creditors’ meeting at which all your creditors will vote on whether or not to accept your self-employed IVA proposal. You don’t have to worry about attending a meeting however – usually if a client is needed they will be contacted by phone.

Creditors rarely attend this meeting as well and the vote only counts for the creditors who attend or submit their vote. As long as 75% of your creditors (by value) agree to your proposal, your self-employed IVA will go ahead. On average 80-85% of all self-employed IVAs referred by us to PayPlan Bespoke Solutions Limited are accepted by the creditors.

If your self-employed IVA is approved, you will be sent approval confirmation, along with details of how to make your first agreed monthly IVA payment. The first payment is normally due within 28 days of your self-employed IVA being approved.

You will make your agreed monthly IVA payments to PayPlan Bespoke Solutions Limited, who will distribute them to your creditors, after deducting their fees and costs for administering your arrangement.

If you’re struggling with your debts and looking for a debt solution, contact PayPlan.

We have over 20 years’ experience of helping our customers to get their lives back on track. Contact us today, and we’ll do our best to help you do the same.

Call us FREE on 0800 280 2816 or complete and submit a callback request.

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