Fundamental to applying for an IVA is evidence of income. This is usually via payslips for the employed or tax returns/accounts for the self-employed. For those who have lost their jobs (or are about to) it may well be that thoughts of an IVA need to be put on the back-burner. For some, bankruptcy is likely to be the best way forward. For others, an explanation to creditors followed by small token payments (even £1/mth), will at least buy some time for the post-redundancy dust to settle and options involving a new job to be explored.

One possibility though could be a so-called Full & Final IVA. This involves demonstrating that there are no realistic funds to make monthly payments back on the debts through ab IVA, but having access to a lump sum that can be offered in lieu of the 5+ years of monthly payments. This could come as a result of a redundancy settlement, or from a friend or family willing to give/loan you a lump sum.

There would need to be just as much investigation into circumstances as there would with the more orthodox monthly payments IVA. So any assets especially equity in a property would need to be looked at alongside current income/outgoings. But for some a 1-off payment IVA could be a very positive way forward. The debts will be settled and although the fact that we have done an IVA remains on our credit file for a total of 6 years, we won’t be subject to the annual review or adjusting things in line with changing financial circumstances. It is – if accepted – what it says on the tin – full and final!