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.