Simplified individual voluntary arrangement

Okay kiddo, do you know what debt is? It's when someone owes money to someone else. Sometimes, people owe so much money that they can't afford to pay it back all at once.

That's where something called an Individual Voluntary Arrangement comes in. It's a plan that someone who owes a lot of money can make with their creditors (the people or companies they owe money to). It's like making a deal to pay back the money over a longer period of time and making smaller payments each month.

A Simplified Individual Voluntary Arrangement is a version of this plan that is easier and quicker to make. It's designed for people who owe a smaller amount of money and can pay it back in a shorter period of time.

So, for example, let's say someone owes £5000 and they can't afford to pay it all back right away. They could make a Simplified Individual Voluntary Arrangement with their creditors to pay back £50 a month for 100 months (which is about 8 years and 4 months!) instead of paying back £5000 all at once.

This makes it easier for the person who owes money to manage their debt and make their payments, and it's also good for the creditors because they know they'll get their money eventually.

Does that make sense, kiddo?