Case Studies

What we hear
• “My debts are spiralling out of control, I just can’t manage them.”
• “I am struggling to make my minimum payments each month.”
• “I am robbing Peter to pay Paul.”
• “It’s got the stage where it’s all making me ill with worry.”
• “My creditors are harassing me every day and threatening legal action.”

What we can do
Individual Voluntary Arrangement: Case Studies
Choose from the following:
• Tenant/Employed
• Homeowner/Employed <
• Lump Sum
• Homeowner/Self Employed

Homeowner/Employed
Mrs. T. of Ealing had outstanding debts of £ 105,000. She was in a position whereby she was able to make regular payments of £600 per month. Mrs. T. also owned her home and was very worried about the possibility of bankruptcy and the subsequent loss of her home. Her share of the equity amounted to £12,000. With our assistance Mrs. T. prepared a proposal outlining a five-year repayment plan. She offered to make 60 regular monthly payments of £600. She also offered to have her home professionally revalued in the first year of the Arrangement and to pay half of her share of the equity by the end of the Arrangement. It was agreed that Mrs. T. would either re-mortgage her home in the final year of her Arrangement to release £6,000 worth of equity, or she would continue to make reduced payments for a further twelve months. Mrs. T’s proposals were accepted by her creditors and at the end of her IVA she will have paid 31 pence in the pound. An IVA was the ideal solution to Mrs. T’s debt problems as she now makes one affordable monthly repayment and does not have to worry about losing her home because of her debts.