IVA Case Studies
IVA CASE STUDY 1
John & Susan Jones have two children and live in their own home that they purchased two years ago. They estimate that its current value is around £175,000 and they have a mortgage with their bank for £155,000.
They began to experience financial difficulties when John’s employers stopped overtime, which made a drastic reduction in his monthly salary. As a result of the fall in income, the family relied more on unsecured credit and their borrowing levels rose very quickly to a point where the total outstanding amount on credit cards and loans was £34,000, costing the Jones’s £815 per month.
John & Susan contacted Debtfocus for help with their situation and following a free consultation with one of our advisors it was clear to see that after allowing for the family’s priority living expenses, the amount of £815 each month was unaffordable
After considering all their options, Debtfocus determined that an Individual Voluntary Arrangement (IVA ) was the best solution to their predicament and made a proposal for an IVA to the creditors o n the Jones’s behalf. This was accepted and after only 6 weeks John & Susan entered into their IVA with a monthly payment of £280 thereby saving them £535.00 each month, removing the stress of their debts and allowing them to get on with their lives and repay their debts at an affordable monthly level! Best of all their property was excluded from the IVA and after 5 years they will be completely debt free as their creditors have agreed to legally write off the balance.
IVA CASE STUDY 2
Simon Woods has recently split up from his long term partner and has moved into rented accommodation. As he now has only his salary to rely on each month, he is finding it very difficult to meet the payments on his loan and credit cards after he has paid his rent and living expenses. In recent months Simon had started missing payments and had begun to receive phone calls and letters from his creditors with the threat of legal action.
Simon contacted Debtfocus and took advantage of our free Consultation where he was surprised to find that in total he owed £28,000 with a total monthly payment of £635.00. Debtfocus explained the various debt solutions that were available to Simon and they both agreed the best way to solve his problem was via an Individual Voluntary Arrangement (IVA).
Debtfocus put forward the IVA proposal to Simon’s creditors which was successfully accepted. This now protects him against any legal action, stops further interest and charges being added and reduces his monthly payment to an affordable £255 each month.
The IVA will run for 60 months which means that after paying back what he can afford, Simon will have written off the balance of his debts and will be completely debt free. The costs of doing a Voluntary Arrangement are also covered by the creditors so there is no extra to pay.
IVA CASE STUDY 3
Tony Harris is self-employed and runs a small building business. The recent problems within the industry have resulted in fewer contracts and therefore his income has dropped and he has struggled to keep up with his credit repayments including his unsecured £15,000 business loan. Tony is married with 2 children and owns a semi-detached property worth £200,000 with an outstanding mortgage of £170,000.
The bank that lent him the funds for the business loan have started court proceedings in order to get a charging order on his property which will secure the debt and extinguish the little equity he has in his family home. In addition to this he has over £50,000 worth of credit cards and loans and can no longer afford to pay the £1,500 per month repayments to his creditors.
Tony approached Debtfocus and received an immediate Free Consultation to get advice on going bankrupt as he didn’t think he had any other options available. Tony was relieved to hear that there were other options available to him and they both agreed an Individual Voluntary Arrangement (IVA) was the best solution to his debt problems. Debtfocus immediately took steps to obtain the paperwork relating to the charging order proceedings and contact both the bank and the court to advise them of the proposed IVA.
Within 5 weeks Tony’s IVA was approved by creditors and the charging order was dismissed.
Tony was able to focus on improving his business without the worry of creditors threatening legal action and jeopardising his family home.
