A Full and Final IVA – Jane’s story

Jane explained that she had been struggling with debt since her late teenage years over 10 years ago. Overspending when she first was offered credit led to pat of her income always going to debt repayments. But all was under control, for a number of years – credit cards were used when a problem arose (or a temptation to spend became too much) – but for the most part things ticked over without too much cause for concern.

That was until she was diagnose with a debilitating illness. After several weeks off work, her income was cut to statutory sick pay – barely enough to cover essential living costs let alone to cover debt repayments. She was dependent on credit for the next 6 months. When Jane returned to a new job with the same Company, her duties were less demanding and her salary reflected that. Her debt repayments were by now unaffordable. It was at this point that she explored debt solutions and came to the conclusion that an IVA could work well for her. She was £20,000 in debt – but with cut backs she worked out she could afford £150/month to cover her debts. This was confirmed by the IVA Company she was in touch with.

However there was a nagging doubt in her mind. She was still not fully fit and was warned the illness could return. Furthermore her job had become less secure, with redundancies rumoured. Would she be able to maintain the IVA repayments for 5 years? At this point mum and dad stepped in. Further research and conversation revealed the possibility of a Full and Final IVA. Mum and dad were willing to lend Jane £9000 if she repaid it at £150/month. But being mum and dad – meant that if something happened that meant Jane could not afford the repayment – then she could put the repayments on hold.

The IVA Company were informed and of course with the new plan Jane had no available income for the IVA (the £150 was now going to the parents instead) but did have the £9000 to offer as a lump sum. Fortunately the creditors accepted the offer, appreciating that the money upfront was preferable to the uncertainty of £150/month given Jane’s circumstances.


The fact that Jane had undertaken an IVA still stays on her credit rating for 6 years, but she is debt-free (except as her parents remind her frequently …. to them).