Case Studies

IVA

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.