IVA Example 1

Angela from Croydon was making monthly repayments of £700 on debts of £50,000 from various credit cards and unsecured loans. The debt had built up over a number of years following her husband being made redundant. Angela was finding it impossible to afford the debt repayments and the ongoing stress of trying to juggle payments to creditors each month. This in turn was starting to make them both ill with worry. This triggered them to take action.

After an initial phone call and a meeting with Angela, we had put together a repayment package for them both to pay £380 per month over a five year period (total payment £22,800).

The IVA repayment plan had reduced their monthly repayments by over £300 to an amount that they could comfortably afford and the balance of his debts (approx £26,000) will be legally written off. They will be debt free within 5 years.

IVA Example 2

John from Leeds contacted TDC when he was faced with significant financial borrowings on credit cards and unsecured loans. John was 50 and very unconvinced by the information he had seen on the internet for Individual Voluntary Arrangements.

He had not planned to be in this situation at the age of 50. Accumulating debts on his credit cards and through loan was easy, as having to manage with 4 children. His wife had taken on the role as housewife and mother. John maintained a reasonable lifestyle until he was made redundant. He was shocked to find that he was not entitled to redundancy pay. It took John 8 months to find another job and he therefore had to rely heavily on his credit cards to increase his £80 a week job seekers income. Once back in employment. John decided to take action and took out a £15,000 consolidation unsecured loan. Everything was ok at first, but then he and his wife separated and he moved out of the home and rented. The rent needed a deposit of 2 months upfront. He needed further funds to furnish the property and the only way he could do this was by using his credit card. John ran up another £2000 worth of unsecured debt. It was here that John contacted Insolvency Network. We explained to him that he did not have to enter into bankruptcy as an IVA was a much better alternative to his situation. A five year arrangement with his creditors (IVA) was offered and John took up this option. John had debts in his name of over £25,000 and was paying out £450 per month. The IVA with us reduced his payment to £300 making it affordable for him to live. He will pay £18,000 back to creditors with a write off at £7,000.00.

IVA Example 3

Mr and Mrs Jones from Manchester have 3 children under 10, and a total debt of £32,000 on loans and credit cards they also have a car on H.P. which is essential for Mr Jones to travel to work. They currently pay out £500 per month leaving them with an ever growing overdraft facility. Their outgoings leave them with no money at the end of each month. They agreed to repayments of £250 per month for 2 years and £350 in years 3, 4 & 5 as the car H.P ends in 24 months (2 years). They get to keep the car and have a new Bank account and no overdraft. In total they will pay back £18,600 over 60 months in the IVA.

IVA Example 4

Mr & Mrs Lewis from Liverpool came to TDC with debts of £45,000. Some were in his name and the rest were in joint names. They were paying credit cards with credit cards hoping their situation would change. They were renting and both were working full time. Mr & Mrs Lewis were paying out £1100 per month towards their cards and loans. After we looked into what they could afford to pay, we put together an IVA proposal for 60 months at £370 per month. This means they would pay back £22,200. The payment was affordable to them and accepted by their creditors.

IVA Example 5

Mr Yates from Cannock came into our Cannock office in a panic (Feb 2010). He had been visited by a bailiff for unpaid council tax dating back 2 years from a previous property. After looking at Mr Yates financial position, we found there to be £110,000 of unsecured debt. Mr Yates was self employed and used his credit cards to keep his business afloat. Last year the business stopped trading and Mr Yates found alternative work. As a result his income dropped and he could no longer meet his monthly payments (truth be told he could not pay them a year previously). He was a homeowner with a property worth £175,000 and a mortgage outstanding of £120,000. We made an offer all creditors and the bailiff to stop action while we set-up a Full and Final IVA. His IVA was accepted with a final offer from a re-mortgage of £40,000. His mortgage has gone up by £200 per month but he is now debt free, stress free and feels he can start over. TDC partner with an Independent Mortgage Advisor to help us when giving customer all options available.

For more information and how to apply for a I.V.A, please call us on 0800 612 6076